{"id":31282,"date":"2013-11-18T00:36:51","date_gmt":"2013-11-17T23:36:51","guid":{"rendered":"http:\/\/beta.next-finance.net\/news\/the-rising-tide-lifted-all-ships-hedge-funds-deliver-in-october\/"},"modified":"2013-11-18T00:36:51","modified_gmt":"2013-11-17T23:36:51","slug":"the-rising-tide-lifted-all-ships-hedge-funds-deliver-in-october","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/news\/the-rising-tide-lifted-all-ships-hedge-funds-deliver-in-october\/","title":{"rendered":"The rising tide lifted all ships: hedge funds deliver in october"},"content":{"rendered":"

The Lyxor Hedge Fund Index posted a positive
\nperformance of 1.58% in October (+4.80% YTD).<\/strong><\/p>\n

>> Hedge funds were helped by rising asset prices and
\ndelivered solid results. The Lyxor Hedge Fund Index was up
\n1.6% in October, with all strategies generating positive results.
\nStrategies exposed to equities performed the best. The median
\nexposure to equities of all hedge funds remained at the top of
\nthe range at 33%, suggesting that managers remain
\nconstructive.<\/p>\n

>> Equity strategies generated strong performance. L\/S Equity
\nLong bias was up 1.6% in October (13% YTD). The managers
\nbenefited from the high net exposure to equities (73%). L\/S
\nEquity Variable bias managers were up 1.6%; with a net
\nexposure at the end of October at 36%. Sector positioning in
\nUS equities increased on financials, communication and
\nmaterials and decreased on Consumer Staples. In Europe, the
\nbiggest increase in net exposure was in Communications while
\nnet exposure decreased in Industrials and Consumer Staples.<\/p>\n

>> The Event Driven space also produced solid results in
\nOctober. Special Situation funds returned 1.1% (10% YTD).
\nThese funds are becoming like more traditional L\/S equity
\nmanagers. They maintained a net equity exposure at 44% and
\nnet credit exposure of 19%. Merger Arbitrage funds were up
\n1.4% but managers reduced risk, with net exposure down from
\n61% to 43%, suggesting less directional views.<\/strong><\/p>\n

>> L\/S Credit Arbitrage funds gained 1.2% as credit spreads
\ntightened in the US and Europe. Funds with long exposure in
\nEurope had particularly strong gains.
\nFunds increased risk
\nmeaningfully with gross exposure at 275% from 250%. This
\nprobably follows investor\u2019s recent shift in expectations that
\ntapering will not occur before March 2014.<\/quote><\/p>\n

>> CTA Long Term returned 4%. Managers are long equities
\nand bonds, having a 38% risk allocation to equities and 13% to
\nbonds. The equity risk allocation is the highest in the past 10
\nyears. CTA Short Term had a 1.2% return but are down 5%
\nYTD as the strategy continues to struggle and hurt by low
\nvolumes and low intra-day dispersion.<\/p>\n

>> Global Macro funds were up 0.9%. Net equity exposure
\nincreased to 54% over the course of the month. Gross
\nexposure to short-term rates increased to 110% but decreased
\non long-term rates to 160%.<\/p>\n

The opportunity set to profit from
\nviews in the short-term rates market was high as markets had
\npriced an imminent rate hike in the US, UK and Europe. This
\npricing has since reversed.<\/quote><\/p>\n

>> Equity and macro strategies should continue to benefit from
\na normalized environment with low correlations.<\/strong> Within the
\nequity space, Special Situation managers have demonstrated
\nan ability to unlock shareholder value.<\/p>\n

\u201cMarkets remain driven by central banks largesse despite
\nsignals of economic recovery. High beta strategies have
\ndelivered and hedge fund managers are positioned to benefit
\nfrom it\u201d<\/em> says Philippe Ferreira, Head of Research and External
\nRelations at Lyxor AM Managed Account Platform.<\/p>\n","protected":false},"excerpt":{"rendered":"

All Lyxor Strategy Indices ended the month of October in
\npositive territory, led by the CTA Long Term (+4.03%), the L\/S
\nEquity Market Neutral (+1.77%) and the L\/S Equity Long Bias
\n(+1.63%).<\/p>\n","protected":false},"author":20,"featured_media":31280,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1470],"tags":[1687,1743,1655,1658,1651,1437,1662,1672],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/31282"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=31282"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/31282\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/31280"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=31282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=31282"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=31282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}