Tue, May 17, 2022
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Long/short credit hedge fund strategies resilient in 2019

Tuesday, May 21, 2019

Laxman Pai, Opalesque Asia:

In a context where rising trade uncertainties have interrupted the rally in risk assets, L/S Credit strategies have been resilient in May so far, said Lyxor in its weekly brief.

Such resiliency took place despite a widening in High Yield (HY) credit spreads, by approximately +35bps both in Euro and in USD. The Lyxor L/S Credit Peer Group was down -0.2% month-to-date, while the Global Peer group was down -0.7%.

Based on a sample of 30 L/S Credit UCITS strategies, the best performing one month-to-date was up +0.6% and the worst performing one was down -2.0%. Since the beginning of 2019, L/S Credit strategies outperformed, up +3.0%.

"Our views on the strategy have been constructive over recent months, assuming that i) sovereign bond yields are low and will likely stay low for longer as monetary policy will not normalize anytime soon; ii) carry strategies such as HY Credit should benefit from the portfolio rebalancing effect, whereby low bond yields on safe long-term securities compress risk premia for lower graded securities; and iii) L/S Credit strategies should benefit from the compression in risk premia while controlling for volatility," said Lyxor.

L/S Credit strategies halved the volatility

"We estimate that L/S Credit strategies halved the volatility in returns of HY Credit over the past ten years. We also estimate that the information ratio of L/S Credit has been close to 2, significantly above the ratio for......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Long/short equity hedge fund with bear market experience has a winning quarter[more]

    B. G., Opalesque Geneva: Experience during a Russian bear market lasting five years enabled Christian Putz to identify certain investment patterns in the market which he now applies to his current investment strategy. London-based ARR Inv

  2. Schroders acquires European renewable infrastructure manager Greencoat Capital[more]

    Laxman Pai, Opalesque Asia: British multinational asset management company Schroders has completed the acquisition of a 75% shareholding in Greencoat Capital, one of Europe's largest investment managers dedicated to the high-growth renewable infrastructure market. The remaining 25% is owned by Gr

  3. Opalesque Exclusive: Global equity manager focuses on symbiotic value chains[more]

    B. G., Opalesque Geneva: A global equity manager has made a point of focusing on the phenomenon of shrinking supply chains and avoiding zero-sum business models. London-based Tollymore Investment Partners is a private partnersh

  4. Satori Capital intros energy transition fund, a long/short equity strategy[more]

    Laxman Pai, Opalesque Asia: Dallas-based alternatives manager founded on the principles of conscious capitalism, Satori Capital has launched Satori Environmental, a long/short equity strategy that primarily invests in securities impacted by the global energy sector's shift from fossil-based s

  5. The Big Picture: With the war, E, S, and G have collectively moved back to the fore[more]

    B. G., Opalesque Geneva: In this interview, Dr. Patrick Welton, founder and CIO of Welton Investment Partners, offers his observations on the major macro themes expected to affect the comm