IndexIQ: Hedge Fund Replication Strategies Broadly Up in August

Sep 12 2017 | 9:57pm ET

Five of IndexIQ’s six hedge fund replication strategies were positive in August, confirming the momentum seen in the summer from traditional alternative investment metrics, although the period also saw the first decline in one of the company’s sub-strategy measures. 

Returns were led by the IQ Hedge Multi-Strategy Index, up 0.67% in the month, followed by the IQ Hedge Long/Short Index, which returned 0.56% in the period. However, August also saw the first dip in an index in several months, as the IQ Merger Arbitrage Index fell -0.78%. Details:

Name

Ticker

August

YTD

IQ Hedge Multi-Strategy

IQHGMS

0.67%

4.90%

IQ Hedge Market Neutral

IQHGMN

0.23%

1.93%

IQ Hedge Global Macro

IQHGMA

0.43%

6.92%

IQ Hedge Event Driven

IQHGED

0.05%

7.33%

IQ Hedge Long/Short

IQHGLS

0.56%

9.73%

IQ Merger Arbitrage

IQMNA

(0.78%)

4.72%

“August saw the Dow cross 22,000 for the first time, driven by strong earnings, low interest rates, and the hope that Washington might finally move forward on tax reform,” said Salvatore Bruno, IndexIQ’s CIO, in a statement. “Working against this advance has been the geopolitical situation, as tension with Korea ratcheted up. This, in turn, resulted in higher levels of volatility, something we expect to continue as we move into September which is often a challenging month for the markets.”

Designed as investable benchmarks that replicate the performance characteristics of sophisticated hedge fund strategies, the IQ Hedge Indexes comprise the first family of investable benchmark indexes covering hedge fund replication/alternative beta strategies. 

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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