IndexIQ: Hedge Fund Replication Strategies Mixed in November

Dec 9 2016 | 7:44pm ET

Only two of the six investable hedge fund replication indices from IndexIQ posted positive performances during November, despite strong showings by hedge funds during the period. 

Gainers were led by a rise of +0.97 percent in the IQ Merger Arbitrage Index, as markets reacted strongly in the wake of the U.S. presidential election.  The IQ Hedge Long/Short Index was up +0.74 percent in the month, while the IQ Hedge Multi-Strategy Index fell -1.22 percent and the IQ Hedge Market Neutral Index declined -0.53 percent.

Index returns through November 30, 2016 were as follows:



Ticker

1 Month

YTD

IQ Hedge Multi-Strategy

IQHGMS

-1.22%

1.21%

       

IQ Hedge Market Neutral

IQHGMN

-0.53%

2.88%

       

IQ Hedge Global Macro

IQHGMA

-1.68%

2.23%

       

IQ Hedge Event Driven

IQHGED

-0.56%

5.47%

       

IQ Hedge Long/Short

IQHGLS

0.74%

4.19%

       

IQ Merger Arbitrage

IQMNA

0.97%

4.75%

 
"The election of Donald Trump sent the markets off in new directions, and began to break down some of the asset class correlations we've seen in recent years,” said Salvatore Bruno, IndexIQ's CIO. “Bonds sold off, small cap stocks outperformed, and many commodities and oil rallied. If we are in fact entering a period of diverging asset classes, this should create a favorable environment for many liquid alternative strategies, and investors should consider repositioning their portfolios accordingly."
 
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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