Current concerns include:<\/p>\n\n
- The true magnitude of the Chinese slowdown<\/li>\n
- The risk of an FX crisis in some of the weakest EM countries<\/li>\n
- The actual resilience of global growth to another round of deflationary pressures<\/li>\n
- The uncertainty around the Fed\u2019s normalization (the plunge in EM assets and
\ncommodities follows the April rout for sovereign bonds)<\/li>\n- Monetary policies’ ability to deal with any of these potential shocks.
\n<\/quote><\/li>\n<\/ul>\nOver the week, global equities plunged by 9%, the USD trade weighted dropped by
\nmore than 2.5%, energy spots plunged by another 10% and base metals lost 4%.<\/p>\nThe Lyxor Hedge Fund Index was down 3.5% over the same period. Event Driven funds
\nwere the main losers. There was high dispersion in managers\u2019 return, with losses in
\nsome heavy-weight funds.
\nOverall, CTAs and Fixed Income Arbitrage funds proved to
\nbe reasonably resilient. A milder pressure on credit and govies supported credit
\nstrategies.<\/quote>
\n The losses in the L\/S Equity space were reasonable, with the notable
\nexception of Asian and US long bias managers. A high dispersion was recorded among
\nGlobal Macro funds.<\/p>\n
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