Hedge funds in recovery mode, says Lyxor
17 November 2014 Paris
Image: Shutterstock
The market recovery is gathering momentum, according to Lyxor Asset Management, with the S&P 500 hitting a new high.
Equities were up, high yield spreads down and the volatility index has returned to the 12-14 range.
According to Lyxor, market sentiment was boosted by positive data on US jobs and better than expected releases in some European countries.
Trends in foreign exchange and commodity markets continued, with the US dollar edging up against major currencies while energy and precious metals slid. Lyxor has stated that this framework was supportive to commodity trading advisors (CTAs).
Philippe Ferreira, head of research at Lyxor Asset Management, commented: “Despite this remarkable upswing, the Lyxor Hedge Fund index was still in timid recovery mode, up 0.1 percent last week.”
“This is now the fourth consecutive week of positive performance, up 1 percent since mid-October. However, dispersion among strategies remains high, with CTAs leading the pack. In terms of positioning, momentum players recently turned short European equities.”
Event driven strategies were also in recovery mode on the back of special situations managers, while long and short equity was the worst performing strategy.
Most of the disappointment came from European funds which suffered from their short exposure on energy services names.
US managers fared better as they held onto their long positions on retailers before Black Friday.
Despite this, they failed from fully capturing the market rebound on the back of their low exposure to the energy sector, which experienced an unexpected rebound.
Equities were up, high yield spreads down and the volatility index has returned to the 12-14 range.
According to Lyxor, market sentiment was boosted by positive data on US jobs and better than expected releases in some European countries.
Trends in foreign exchange and commodity markets continued, with the US dollar edging up against major currencies while energy and precious metals slid. Lyxor has stated that this framework was supportive to commodity trading advisors (CTAs).
Philippe Ferreira, head of research at Lyxor Asset Management, commented: “Despite this remarkable upswing, the Lyxor Hedge Fund index was still in timid recovery mode, up 0.1 percent last week.”
“This is now the fourth consecutive week of positive performance, up 1 percent since mid-October. However, dispersion among strategies remains high, with CTAs leading the pack. In terms of positioning, momentum players recently turned short European equities.”
Event driven strategies were also in recovery mode on the back of special situations managers, while long and short equity was the worst performing strategy.
Most of the disappointment came from European funds which suffered from their short exposure on energy services names.
US managers fared better as they held onto their long positions on retailers before Black Friday.
Despite this, they failed from fully capturing the market rebound on the back of their low exposure to the energy sector, which experienced an unexpected rebound.
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