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Komfie Manalo, Opalesque Asia: Hedge funds gained in September as equities continued their rise and bond prices edge lower, according to the Lyxor Hedge Fund Index.
However, Lyxor Asset Management said that the S&P 500 broke new records towards the end of last month, ahead of the Q3 earnings season which is expected to deliver solid earnings growth. Meanwhile, monetary policies remain highly accommodative as inflation remains below central banks' targets. This goldilocks scenario is backed by solid economic numbers globally.
Lyxor AM Senior Strategist Philippe Ferreira said that amongst hedge fund strategies, global macro managers posted the highest gains on the back of their constructive views on the economic environment which translates into a long stance on equities and commodities and a long stance on the U.S. dollar.
Ferreira said, "Going forward, we maintain firm convictions on event driven and fixed income arbitrage strategies. Both strategies remain attractive in a context where equities and bond yields are set to climb higher."
He added that fixed income arbitrage also delivered positive returns as bond yields edged higher. Meanwhile, event-driven also climber higher as deal spreads tightened and activist campaigns are bearing fruits.
On a negative note, CTAs underperformed in September and during the third quarter as the trend reversal in fixed income and foreign exchange markets was a drag on pe...................... To view our full article Click here
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