Wilshire Liquid Alternative Index Gains +1.59% in January

Feb 13 2018 | 4:52pm ET

Following the upward trend in the U.S. equity markets, most liquid alternatives continued in the winning column in January, according to new data from Wilshire Associates.

The company’s Wilshire Liquid Alternative Index, which provides a representative baseline for how the broad liquid alternative investment category performs, gained +1.59%.

The measure nonetheless underperformed the HFRX Global Hedge Fund Index, which earned +2.45% as published by Hedge Fund Research.

The Wilshire Liquid Alternative Index family is a joint offering between Wilshire Funds Management, the global investment management business unit of Wilshire Associates Incorporated, and Wilshire Analytics, creator of the Wilshire 5000 Total Market IndexSM.

Five of Wilshire’s five liquid alternative substrategy indexes were in the green for January. Highlights:

  • Multi-Strategy: The Wilshire Liquid Alternative Multi-Strategy IndexSM, which includes both single and multi-manager funds, returned 1.54% in January. 
  • Global Macro: The Wilshire Liquid Alternative Global Macro IndexSM ended the month up 2.74%, underperforming the 3.80% return of the HFRX Macro/CTA Index. 
  • Relative Value: The Wilshire Liquid Alternative Relative Value IndexSM ended the month up 0.63%, underperforming the 1.09% return of the HFRX Relative Value Arbitrage Index. 
  • Equity Hedge: The Wilshire Liquid Alternative Equity Hedge IndexSM ended the month up 2.52%, underperforming the 3.41% return of the HFRX Equity Hedge Index. 
  • Event-Drive: The Wilshire Liquid Alternative Event Driven IndexSM ended the month up 0.87%, underperforming the 1.76% return of the HFRX Event Driven Index.

“The continued rally in equities led the Wilshire Liquid Alternative Global Macro IndexSM to its strongest monthly return since inception. CTAs led the charge and contributed the majority of this return, having captured the strong and long term upward trend in equity markets,” said Jason Schwarz, president of Wilshire Funds Management and Wilshire Analytics, in a statement.

The Wilshire Liquid Alternative Index family is a joint offering between Wilshire Funds Management and Wilshire Analytics, creator of the Wilshire 5000 Total Market Index. It aims to measure the performance of diversified liquid alternative investment strategies implemented in mutual fund structures.

Founded in 1972, Wilshire Associates is an independent investment consulting and services firm that provides plan sponsors, investment managers and financial intermediaries with a wide range of services. Its business units include Wilshire Analytics, Wilshire Consulting, Wilshire Funds Management and Wilshire Private Markets, and it is home to the Wilshire 5000 Total Market Index. Based in Santa Monica, California, the firm provides services to clients in more than 20 countries representing more than 500 organizations with assets totaling approximately $8 trillion.


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