IndexIQ: Hedge Fund Replication Strategies All Positive in March

Apr 14 2016 | 7:53pm ET

Investable hedge fund replication indices from IndexIQ all turned positive in March, according to the latest data from the index provider, the latest data point to illustrate the reversal that took place in the alternative investment industry during the month. 

For the period ended March 31, 2016, all six of the firm’s strategy components were in the green, led by a 3.83% surge in the IQ Hedge Long/Short Index and followed by a 3.26% jump in the IQ Hedge Event Driven Index. 

Elsewhere, the IQ Hedge Global Macro Index gained 2.94%, the IQ Hedge Multi Strategy Index rose 2.27%, and the IQ Hedge Market Neutral Index rose 1.06%. 

The lowest result for the month was an 0.79% gain in the IQ Hedge Merger Arbitrage Index. The full results:

IQ Hedge Indexes
      Ticker      1 Mo.     3 Mo.     YTD     1 Year     3 Year      
IQ Hedge Multi-Strategy Index     IQHGMS     2.27%     1.49%     1.49%     -1.71%     3.14%      
IQ Hedge Market Neutral Index     IQHGMN     1.06%     1.82%     1.82%     0.30%     1.80%      
IQ Hedge Global Macro Index     IQHGMA     2.94%     1.90%     1.90%     -1.46%     -0.94%      
IQ Hedge Event Driven Index     IQHGED     3.26%     1.52%     1.52%     0.08%     4.92%      
IQ Hedge Long/Short Index     IQHGLS     3.83%     0.65%     0.65%     -2.57%     3.46%      
IQ Merger Arbitrage Index     IQMNA     0.79%     3.01%     3.01%     1.88%     5.46%      


“Performance in our IQ Hedge family of indexes was positive across the board in March,” added Adam Patti, CEO of IndexIQ. “One of the trends we recommended that investors and advisors watch for this year was hedge fund strategies potentially becoming more attractive, and all six of the IQ Hedge indices ended the first quarter of 2016 in positive territory.” “March saw a strong rebound in the equity markets and positive returns across our index family,” said Salvatore Bruno, CIO at IndexIQ. “Volatility persisted, however, as the U.S. Treasury unexpectedly announced new regulations governing so-called ‘tax inversions’ in early April. While this is already having an impact on some cross border M&A activity, we don’t believe domestic deals will be impacted.”

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 is an issuer of liquid alternative products offered as indexes, ETFs, mutual funds, SMAs and model portfolios. The asset management arm of insurance company New York Life bought the company in late 2014. 

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