Lyxor: Hedge Funds Post Small Gain

Sep 10 2012 | 12:28pm ET

Hedge funds had a positive month in August, but one that still managed to bitterly disappoint.

The Lyxor Hedge Fund Index rose 0.4% last month, and 11 of its 14 strategy benchmarks also posted gains. But the Standard & Poor's 500 Index rose almost 2% in August, and is up much more than the average hedge fund this year, about 12%.

"While not outright good news, less negative economic news has been supportive as expectations had already been significantly adjusted downwards," Lyxor Asset Management's Stefan Keller, who heads its managed account platform research, said. "This ‘second derivative trade’ has started to be implemented by hedge fund managers, which were able to benefit from better market conditions."

Lyxor said its long/short credit arbitrage, long/short credit and long-bias equity indices did best last month, with each rising by 1.5% (long/short credit is up 5.1% year-to-date and long bias 7.1% YTD). Fixed-income arbitrage and global macro added 1.2% (7.2% YTD). Special situations and market neutral funds funds rose 1.1%, while distressed funds added 0.6%. Merger arbitrage and long/short equity statistical arbitrage added 0.4%, variable bias 0.3%.

The losers in August were commodity trading advisors and CB arbitrage funds. The latter lost 0.6%. Short-term CTAs fell 0.8% and long-term 1.7%.


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.