IndexIQ: Hedge Fund Replication Strategies Up Again In September

Oct 11 2017 | 4:25pm ET

All six of IndexIQ’s hedge fund replication strategies were positive in September, echoing the momentum seen in measures of traditional alternative investment vehicles.

Returns were led by the IQ Hedge Long/Short Index, up 1.18% for the month, followed by the IQ Merger Arbitrage Index, which returned 1.10% in the period. The IQ Hedge Long/Short Index is also the top-performing index in the family for the year to date, up 11.02% for the year through September. All six of the indexes in the IQ Hedge Index family finished September in positive territory for the month and remain well into positive territory YTD.

IQ Hedge Index returns for the period ended September 30, 2017 were as follows:

   

Sept.

YTD

IQ Hedge Multi-Strategy

IQHGMS

0.31%

5.22%

IQ Hedge Market Neutral

IQHGMN

0.37%

2.31%

IQ Hedge Global Macro

IQHGMA

0.66%

7.63%

IQ Hedge Event Driven

IQHGED

0.64%

8.02%

IQ Hedge Long/Short

IQHGLS

1.18%

11.02%

IQ Merger Arbitrage

IQMNA

1.10%

5.87%

 

“Global markets turned in strong performance in September with domestic indices lagging behind international,” said Salvatore Bruno, IndexIQ’s CIO, in a statement. “Earlier in the month, a string of natural disasters caused mixed results in the markets and led to a deal with Congress to raise the debt ceiling and keep the government funded through December.”

“The month closed out with tax reform dominating the headlines, and while some within the administration believe tax reform can be passed in 2017, markets remained relatively stable as this has already been priced in,” he continued.

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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