- Advertisement -
- Advertisement -

Related

Hedge funds gain in February fuelled by CTAs and Event Driven

Report: Alternative Fixed Income

- 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

Bitcoin-Focused Anna Secures Full AIFM License

Anna Asset Management, which runs a momentum-driven strategy focused on Bitcoin futures, has been granted a full license as an alternative investment fund manager...

Bright Spots Emerge Amid Difficult March for Nordic Hedge Funds

Although March already feels like a distant memory amid the turbulence of April, Nordic hedge funds also faced a challenging month back then. All...

Mandatum Managed Futures Maintains Momentum

Mandatum Managed Futures Fund was named the “Best Nordic Managed Futures Fund” at the Nordic Hedge Award for the second year in a row,...

TIND Discovery Fund Clinches 2024 “Rookie of the Year” Title

One of the earliest distinctions a newly launched hedge fund in the Nordics can earn is the “Rookie of the Year” award, granted annually...

Evli’s Nordic High Yield Fund Aims for Balanced Pan-Nordic Exposure

Finnish asset manager Evli has long been recognized as a specialist in fixed income, managing €7 billion across the asset class. While the firm...

Announcing the Winners of the 2024 Nordic Hedge Award

HedgeNordic is delighted to announce the winners at the 2024 Nordic Hedge Award. We are honoured and humbled to bring together the Nordic hedge...

Allocator Interviews

In-Depth: Megatrends

Voices

Request for Proposal

- Advertisement -