IndexIQ: Hedge Fund Replication Strategies Broadly Positive in 2016

Jan 18 2017 | 9:54pm ET

Five of IndexIQ’s six hedge fund replication strategies were up strongly in December, riding the year-end moves in financial markets. For the year, all six were in the green.

The company’s IQ hedge Long/Short Index gained +1.72% in December on the strength in global equity markets, the company said in a statement, while the lone decliner for the period was the IQ Hedge Global Macro Index, down -0.11%.

For the full year, IndexIQ’s IQ Hedge Multi-Strategy Index and its 2.01% IQ Hedge Global Macro Index gained 2.01% and 2.12%, respectively. The firm’s IQ Hedge Event Driven Index ended the year up 6.35%, the best performer of the group, followed by a 5.98% gain in the IQ Hedge Long/Short Index. The company’s IQ Merger Arbitrage Index also did well during the year, up 5.63%.

Index returns through December 31, 2016 were as follows:

Name

Ticker

Dec 16

2016

IQ Hedge Multi-Strategy Index

IQHGMS

0.79%

2.01%

       

IQ Hedge Market Neutral Index

IQHGMN

0.64%

3.54%

       

IQ Hedge Global Macro Index

IQHGMA

-0.11%

2.12%

       

IQ Hedge Event Driven Index

IQHGED

0.83%

6.35%

       

IQ Hedge Long/Short Index

IQHGLS

1.72%

5.98%

       

IQ Merger Arbitrage Index

IQMNA

0.83%

5.63%

 

"The markets started to behave more rationally in December, as the surge following the election of Donald Trump gave way to a less emotional assessment of the prospects for interest rates and the economy over the coming year," said Salvatore Bruno, IndexIQ's Chief Investment Officer.  "The results were broadly positive for hedge funds, with most of the indexes showing strong returns for the period."

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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