IndexIQ: Hedge Fund Replication Strategies Mostly Down in December

Jan 13 2016 | 11:14pm ET

Investable hedge fund replication indices from IndexIQ reveal the same headwinds in December as seen in other alternative investment measures.

New data from the index provider shows negative performance across five of its six strategy components. The steepest decline was seen in the IQ Hedge Long/Short Index, which fell -1.05%, followed by the IQ Hedge Global Macro Index and IQ Hedge Multi-Strategy Index, which both dropped -0.99%. The IQ Hedge Event Driven Index fell 0.84% while the IQ Hedge Market Neutral Index dipped 0.68%. 

On the plus side, the IQ Hedge Merger Arbitrage Index gained 1.88%, an extraordinary performance given the carnage in the rest of the industry. Merger Arb also led the full-year results, gaining 2.33%. Meanwhile, four of the six components were down for the year, led by a -3.34% decline in the firm’s Global Macro index. 

Designed as investable benchmarks that replicate the performance characteristics of sophisticated hedge fund strategies, the IQ Hedge series of indexes were originally introduced in 2007. They are now used as the basis of investment products worldwide, as well as benchmarks for advisors and hedge fund managers. 

Rye, NY-based Index IQ was bought by the asset management arm of insurance company New York Life in December 2014, is an issuer of liquid alternative products offered as indexes, ETFs, mutual funds, SMAs and model portfolios. 

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