- Advertisement -

Related

Hedge funds gain in February fuelled by CTAs and Event Driven

- Advertisement -

Stockholm (HedgeNordic) – Hedge funds had a positive month in February. According to French asset manager Lyxor, the industry (as measured by the Lyxor Hedge Fund Index) gained 1 percent on the month with 8 out of 10 sub-indices showing positive contributions.

CTA strategies was the single strongest outperformer thanks to substantial long positions in equity markets. These positions were largely supported by a general upbeat sentiment on the back of Trump´s plans to unveil his “phenomenal” tax policy and comforted by positive economic and inflation prints across main regions.

“CTAs delivered upbeat returns lately, fuelled by the rally in equities and commodities. Yet, the strategy is increasingly vulnerable to trend reversals as stock prices are unlikely to continue to rise at the current pace in the near term. In parallel, Event-Driven strategies, which outperformed year to date, appear to have the potential to pursue their upward trend on the back of a strong pace of M&A activity and corporate restructuring in the U.S”, Philippe Ferreira, Senior-Cross Strategist at Lyxor Management writes in a note.

Event Driven strategies were also on the rise as M&A activity in the US remained robust. Overall, tax reform in the US should translate into higher corporate activity, a tailwind for the Event-Driven strategy, Lyxor writes.

Among strategies that underperformed during the month was fixed income as the Lyxor Fixed Income arbitrage index posted a loss of 1,3 percent.

So far in 2017, Special Situations is the strongest performing strategy, followed by Equity Long/Short (market neutral and variable bias) and CTAs, according to Lyxor´s hedge fund indices.

 

Picture: (c) TischenkoIrina – shutterstock

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

The Madness of Crowds Creates Short Opportunities in Nordic Small Caps

Shorting Nordic small and mid-cap stocks requires more than identifying companies whose valuations appear stretched. Limited borrow availability, thin trading volumes, and unpredictable price...

Anna Svahn on Risk, Adaptability, and the Art of Portfolio Management

Anna Svahn took an unconventional route into portfolio management, building her investment experience through personal trading, writing, and entrepreneurship rather than investment banking or...

Sebastian Hallenius to Lead IKC Capital’s Next Phase

Sebastian Hallenius has joined IKC Capital as Chief Investment Officer and incoming CEO after nine years at Länsförsäkringar Fonder, where he helped bring externally...

SEB Asset Selection Marks 20 Years of Trend-Following Evolution

Twenty years is a long time in the hedge fund industry, where strategies evolve, market environments change, and investment teams come and go. Once...

Atlant Fonder Eyes €1 Billion as Fund Distribution Landscape Shifts

In the Nordic hedge fund industry, funds managing more than €1 billion have typically built their scale with strong institutional backing. Atlant Fonder’s flagship...

Cyber Risk Tops Asset Managers’ Concerns as Investment Risks Rise

Technology and cybersecurity have emerged as the leading concerns for asset managers over the coming year, even as firms report rising exposure to market,...

Allocator Interviews

Voices

Request for Proposal

- Advertisement -