- Advertisement -
- Advertisement -

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


Most Popular This Week


Request for Proposal

- Advertisement -

Latest Articles

Brummer Multi-Strategy Navigates 2022’s “Perfect” Storm

Stockholm (HedgeNordic) – 2022 experienced a “perfect” inflation storm due to an unprecedented amount of monetary and fiscal policy stimulus during the pandemic, war,...

Dream Comes True for Grönblom

Stockholm (HedgeNordic) – Ernst Grönblom had been running his high-conviction strategy of cherry-picking the stock market’s undervalued future winners under the umbrella of United...

Boarding the Broader Alternatives Ship

Stockholm (HedgeNordic) – Tore Davidsen, portfolio manager of SEB Eureka Fixed Income Relative Value since its launch in 2018, will join BankInvest as Senior...

Year of Stabilization of Interest Rates

By Kari Vatanen, CIO of Veritas: The year 2022 was a year of negative surprises in the investment markets and in the global economy. Hopes...

Playing Offense in the Net-Zero Transition

Stockholm (HedgeNordic) – The world’s adoption of cleaner energy had been ongoing prior to Russia unleashing war in Ukraine. The war and its consequences...

Resscapital’s Key Appointment in Pursuit of Awareness

Stockholm (HedgeNordic) – To capitalise on strong performance and continued asset growth in 2022, Resscapital made a key appointment to its investor sales and relations...