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Komfie Manalo, Opalesque Asia:

CTA hedge fund strategies outperformed in the week covering 02 May to 09 on the back of supportive risk appetite conditions, Lyxor Asset Management said in its Weekly Briefing. Global macro funds also delivered positive returns as the USD regained its upward trend. The Lyxor Hedge Fund Index was up +0.2% during the week (+1.1% YTD), led by CTAs. The strategy maintains an elevated beta and has outperformed for the second week in a row, 0.6% (-0.9% YTD).

"Finally, event-driven extended its winning streak as merger arbitrage continued to deliver solid returns," Philippe Ferreira, senior strategist at Lyxor AM said. He continued, "It is important to note the sizable returns delivered by event-driven funds. The strategy has outperformed both a on a quarter-to-date (+2.6%) and year-to-date basis (+4.9%). Stronger exposures to cyclical sectors such as financials and basic materials were supportive. Syngenta, NXP semiconductors and Towers Watson were key contributors recently."

Ferreira added that the outstanding driver of returns was found in the communications sector last week. Straight Path Communications, an owner of spectrum rights for fifth generation networks (5G), was the subject of a bidding war which boosted its stock price by more than 80% during the weekly period under review here. Verizon eventually snapped up the company in a $3.1bn deal, roughly doubling AT&T's initial offer.

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