Fri, Sep 17, 2021
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Wilshire Liquid Alternative Index returns 1.18% in February

Tuesday, March 16, 2021
Opalesque Industry Update - The Wilshire Liquid Alternative Index, which provides a representative baseline for how the broad liquid alternative investment category performs, returned 1.18% in February, underperforming the 1.52% monthly return of the HFRX Global Hedge Fund Index. The Wilshire Liquid Alternative Index family aims to deliver precise market measures for the performance of diversified liquid alternative investment strategies implemented through mutual fund structures, backed by a proprietary classification methodology.

"Following the Reddit-induced deleveraging at the end of January, equity markets bounced back to reach all-time highs during the first three weeks of February," said Jason Schwarz, President and Chief Operating Officer of Wilshire. The Wilshire Liquid Alternative Equity Hedge Index? ended the month up 2.65%, underperforming the HFRX Equity Hedge Index's return of 2.84%.

• On the back of strong fourth quarter corporate earnings, equity markets enjoyed a positive month with alpha opportunities returning to create a favorable environment for long/short investing.

• Growth-oriented managers outperformed value-oriented managers during the month, but as rates began to rise in the latter part of the month, technology began to sell off and a rotation to cyclicals and value names started to take place.

The Wilshire Liquid Alternative Event Driven Index ended the month up 0.99%, underperforming the HFRX Event Driven Index's monthly return of 1.33%.

• Merger arbitrage managers enjoyed a positive February as competitive pricing pressure on deals led to higher and/or hostile bids. The most active M&A sectors were pharmaceuticals, healthcare and technology. The Wilshire Liquid Alternative Global Macro Index? ended the month up 1.54%, outperforming the HFRX Macro/CTA Index's monthly return of 1.29%.

• Macro managers enjoyed a strong month on the back of outsized moves in currencies, commodities and equities. Managers who were short the U.S. dollar, long energies and long equities profited during the month. The rise in yields towards the end of February produced a volatile market and a retracement in equities, which led many CTAs to reduce risk exposure going into March.

The Wilshire Liquid Alternative Relative Value Index ended the month up 0.20%, underperforming the HFRX Relative Value Arbitrage Index's monthly return of 0.41%.

• Structured credit markets experienced a positive month due to flat or tighter spreads across its sectors.

• Relative value convertible arbitrage managers enjoyed a positive month as credit spreads tightened and volatility rose in single name equities.

The Wilshire Liquid Alternative Multi-Strategy Index?, which includes both single and multi-manager funds, returned 1.23% in February.

Article source - Opalesque is not responsible for the content of external internet sites

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. SPACs: The fall of the SPAC market has digital media companies in disagreement about best path forward, Cannae Holdings: SPAC bloodbath provides a good entry point, British car startup Cazoo raises $1bn from SPAC merger, Europe's incoming SPAC boom will create a demand for talent[more]

    The fall of the SPAC market has digital media companies in disagreement about best path forward From CNBC: The digital media industry has reached a strategic crossroads. Earlier this year, special purpose acquisition vehicles (SPACs) appeared to be the long-awaited savior of digital me

  2. Property: Real estate's new moneymaker is not design-driven, it's alternative, Two Sigma building quant tools to hunt real estate bargains[more]

    Real estate's new moneymaker is not design-driven, it's alternative From Forbes: There has been a recent shift of attention in the real estate market as to the types of investments which make the strongest returns. In the past, it's always been a combination of good design, prim

  3. PE/VC: Private equity GPs, LPs alike working on diversity and inclusion, Chinese regulator vows to crack down on private equity, venture capital funds, The VC playbook for portfolio companies: learning from the Covid-19 crisis[more]

    Private equity GPs, LPs alike working on diversity and inclusion From PIonline.com: Private equity general partners and limited partners are doing more to increase diversity in private markets, according to a report released Tuesday by the Institutional Limited Partners Association.

  4. PE/VC: Private equity continues to lead fund closings, Venture capital firms are fighting to throw money at cleantech[more]

    Private equity continues to lead fund closings From PIonline.com: Among private fund closings, private equity funds have led the pack starting in 2011, based on data collected by Pensions & Investments. During those years, private equity's share has ranged from 56% to 72% of the total

  5. PE/VC: Climate tech is hot, but VCs can't forget about water, Five top trusts to tap into the private equity boom[more]

    Climate tech is hot, but VCs can't forget about water From Crunch Base: "It is unequivocal that human influence has warmed the atmosphere, oceans, and land." These fiery words come from the latest landmark U.N. report detailing intensifying, universal climate change impacts. They cover