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Long volatility and tail risk strategies outshined their peers as equities and oil slumped in February

Monday, March 30, 2020
Opalesque Industry Update - Hedge fund managers were down 1.70% in February, reports Eurekahedge, as the development of the COVID-19 outbreak outside of Mainland China weighed on risk assets throughout the month. More than 90% of the hedge fund managers were able to outperform the global equity market during the month, exemplifying the downside protection afforded by hedged strategies as opposed to long-only portfolios.

The CBOE Eurekahedge Long Volatility Hedge Fund Index and the CBOE Eurekahedge Tail Risk Hedge Fund Index returned 8.60% and 14.05% respectively in February. The two strategies are known to provide crisis alpha and tail-risk protection for institutional portfolios.

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