- Advertisement -
- Advertisement -

Related

Lyxor anticipate recovery for long/short equity

Latest Report

- Advertisement -

Stockholm (HedgeNordic) – In its latest review of the hedge fund industry, Lyxor Asset Management makes the case for a comeback of long/short equity strategies. So far in 2016, equity long/short is the biggest loser among the hedge fund strategies tracked by the Lyxor Hedge Fund Index, with declines of 3.8 per cent year-to-date.

The reasoning behind Lyxor´s argument is that long/short equity funds so far this year has suffered from a rotation in risk factors where value stocks have outperformed defensive and low volatility stocks as proxied by the momentum factor. In recent weeks this relationship has turned around and according to Lyxor that will benefit the long/short space.

“Defensive and low volatility stocks, proxied by the momentum factor, have rebounded over the recent weeks. Meanwhile, value stocks went south and underperformed the market. This pattern (momentum up, value down) is actually a return to the normality of the past five years and is taking shape more globally. Importantly, this is having positive implications on L/S Equity managers that have collectively maintained a defensive positioning”, Lyxor states.

In summary, Lyxor believes that the underperformance of long/short equity strategies has come to an end, as a consequence they upgrade their recommendation on Market Neutral L/S Equity managers to slight overweight. Meanwhile, they maintain the recommendation on variable biased L/S Equity at slight overweight and long bias L/S Equity at neutral.

Picture (C): cosma – shutterstock.com

 

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Jonathan Furelid
Jonathan Furelid
Jonathan Furelid is editor and hedge fund analyst at HedgeNordic. Having a background allocating institutional portfolios of systematic strategies at CTA-specialist RPM Risk & Portfolio Management, Mr. Furelid’s focus areas include sytematic macro and CTAs. Jonathan can be reached at: jonathan@hedgenordic.com

Latest Articles

Brevan Howard Winds Down Volatility Fund Managed by Ville Helske

Brevan Howard Asset Management is winding down a volatility-focused hedge fund run by high-profile Finnish portfolio manager Ville Helske. Helske, formerly Head of Allocation...

Ymer to Launch Fourth CLO Fund with Proven Strategy and Structure

Building on the track record of three previous credit funds, Swedish alternative credit specialist Ymer SC AB is preparing to roll out its fourth...

Quirky Questions for: Stefan Nilsson (Hedge Funds Club)

Not every conversation in the hedge fund world needs to revolve around alpha, Sharpe ratios, or fund flows. In the ongoing Quirky Questions series,...

Origo’s Johansson Returns to Sohn Conference with High-Conviction Pick

Swedish stock-picking boutique Origo Fonder is gaining fresh recognition following a strategic transformation, strong performance, and growing assets. The firm’s evolution into an “Origo...

Commodities Lift CTAs Amid Turmoil

In June 2025, the NHX CTA Index was up as losses in stocks and bonds were outweighed by profits in commodities, but briefly erupting...

Finserve Global Security Fund Boosts Quant Edge with Martin Redgård

Under lead portfolio manager Joakim Agerback, the Finserve Global Security Fund has successfully capitalized on the global surge in defense, cybersecurity, and space investments...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.