IndexIQ: Hedge Fund Replication Strategies Dip in October

Nov 18 2016 | 7:53pm ET

All six of IndexIQ’s hedge fund replication strategies were in the red for October, confirming generally negative performance among benchmark hedge fund indexes during the period.

The company’s IQ Hedge Global Macro Index was the top performer, dropping -0.57 percent, while the IQ Hedge Long/Short Index fell -1.97 percent and the IQ Merger Arbitrage Index declined -1.01 percent despite continued strong M&A activity. 

For the year to date, however, all six remain the green, led by a 6.06 percent gain in the IQ Hedge Event Driven Index. The worst performer for 2016 so far is the IQ Hedge Multi-strategy Index, up 2.47 percent and mirroring the difficult year experienced among multi-strategy managers.

"Election-induced volatility and the expectation of a December increase in the Federal Funds rate weighed on the market in October, resulting in a decline for most of the major indexes," said Salvatore Bruno, IndexIQ's CIO.  "There weren't a lot of places to hide during the month."

   

 

1 Month

YTD

IQ Hedge Multi-Strategy Index

IQHGMS

-1.38%

2.47%

       

IQ Hedge Market Neutral Index

IQHGMN

-0.72%

3.43%

       

IQ Hedge Global Macro Index

IQHGMA

-0.57%

3.97%

       

IQ Hedge Event Driven Index

IQHGED

-1.12%

6.06%

       

IQ Hedge Long/Short Index

IQHGLS

-1.97%

3.43%

       

IQ Merger Arbitrage Index

IQMNA

-1.01%

3.74%

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 IndexIQ, 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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