{"id":58350,"date":"2016-11-21T00:30:49","date_gmt":"2016-11-20T23:30:49","guid":{"rendered":"http:\/\/beta.next-finance.net\/news\/hedge-fund-performance-in-light-of-the-u-s-election\/"},"modified":"2019-12-31T01:16:57","modified_gmt":"2019-12-31T00:16:57","slug":"hedge-fund-performance-in-light-of-the-u-s-election","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/news\/hedge-fund-performance-in-light-of-the-u-s-election\/","title":{"rendered":"Hedge fund performance in light of the U.S. election"},"content":{"rendered":"<p>Cyclical sectors have done better than defensive sectors<br \/>\n(except health care stocks which have done well) as looser fiscal policy is expected to<br \/>\nsupport economic activity. Coupled with the possibility that the Trump administration will<br \/>\nimplement protectionist trade policies, expectations of fiscal stimulus are leading to a sharp<br \/>\nrepricing of bond yields. <\/p>\n<p>Although we do not yet have comprehensive data on hedge fund performance covering the<br \/>\nperiod since the U.S. election, our initial estimates suggest that:<\/p>\n<ul>\n<li> i) Long term CTAs were down as losses on their long fixed income positions were only<br \/>\npartially offset by gains on long equities, long USD and long energy in commodities.<\/li>\n<li> ii) Global Macro experienced a wide dispersion in returns. Some strategies that were<br \/>\nlong EM currencies (MXN in particular) experienced losses in the range of 2-3% over<br \/>\nthe recent days. Meanwhile, managers that were short duration in fixed income were<br \/>\nup and some managers investing in equities were flat as gains on longs on European<br \/>\nand Japanese indices were offset by losses on shorts on U.S. indices.<\/li>\n<li> iii) Within the L\/S equity space the long biased managers benefitted from the market<br \/>\nrally as well as from positions on health care stocks. EM L\/S specialists are down in<br \/>\nthe order of 2% on the day of the election and are deleveraging quite aggressively.<\/li>\n<li> iv) Event Driven strategies marginally benefitted from their exposure to health care<br \/>\nstocks but overall their lower net exposure ahead of the election prevented them from<br \/>\njoining the market rally. Implications for the strategy are rather long term and could be<br \/>\npositive to the extent that the march towards tougher regulations might be stopped.<\/li>\n<li> v) L\/S Credit and Fixed Income Arbitrage were resilient in front of higher bond yields.<br \/>\nWe estimate L\/S Credit funds were down 8 to 15 bps on the day of the election.<\/li>\n<\/ul>\n<p><a href=\"http:\/\/www.next-finance.net\/http:\/\/beta.next-finance.net\/wp-content\/uploads\/2016\/11\/ctas_headed_into_the_u.s._election_with_offseting_positions_-long_fixed_income-long_equities.jpg\"><img loading=\"lazy\" class=\" aligncenter size-full wp-image-58210\" src=\"IMG\/jpg\/ctas_headed_into_the_u.s._election_with_offseting_positions_-long_fixed_income-long_equities.jpg\" alt=\"ctas_headed_into_the_u.s._election_with_offseting_positions_-long_fixed_income-long_equities.jpg\" align=\"center\" width=\"809\" height=\"329\" \/><\/a><div id='gallery-1' class='gallery galleryid-58350 gallery-columns-3 gallery-size-herald-lay-c1'><figure class='gallery-item'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a class=\"herald-popup\" href='http:\/\/beta.next-finance.net\/wp-content\/uploads\/2016\/11\/ctas_headed_into_the_u.s._election_with_offseting_positions_-long_fixed_income-long_equities.jpg'><img width=\"470\" height=\"313\" src=\"http:\/\/beta.next-finance.net\/wp-content\/uploads\/2016\/11\/ctas_headed_into_the_u.s._election_with_offseting_positions_-long_fixed_income-long_equities-470x313.jpg\" class=\"attachment-herald-lay-c1 size-herald-lay-c1\" alt=\"\" loading=\"lazy\" srcset=\"http:\/\/beta.next-finance.net\/wp-content\/uploads\/2016\/11\/ctas_headed_into_the_u.s._election_with_offseting_positions_-long_fixed_income-long_equities-470x313.jpg 470w, http:\/\/beta.next-finance.net\/wp-content\/uploads\/2016\/11\/ctas_headed_into_the_u.s._election_with_offseting_positions_-long_fixed_income-long_equities-300x200.jpg 300w, http:\/\/beta.next-finance.net\/wp-content\/uploads\/2016\/11\/ctas_headed_into_the_u.s._election_with_offseting_positions_-long_fixed_income-long_equities-414x276.jpg 414w, http:\/\/beta.next-finance.net\/wp-content\/uploads\/2016\/11\/ctas_headed_into_the_u.s._election_with_offseting_positions_-long_fixed_income-long_equities-130x86.jpg 130w, http:\/\/beta.next-finance.net\/wp-content\/uploads\/2016\/11\/ctas_headed_into_the_u.s._election_with_offseting_positions_-long_fixed_income-long_equities-187x124.jpg 187w\" sizes=\"(max-width: 470px) 100vw, 470px\" \/><\/a>\n\t\t\t<\/div><\/figure>\n\t\t<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>The victory of Donald Trump in the U.S. presidential election has led to widespread market<br \/>\nmovements. After initial adverse movements, equities rallied and bond yields jumped as<br \/>\nTrump\u2019s initial statements reassured markets, calling for unity and pledging that he will be<br \/>\nthe \u201cpresident of all Americans\u201d. <\/p>\n","protected":false},"author":1,"featured_media":58210,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1470],"tags":[1687,1655,1723,1690,1651,1437,1662,2068,1672],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/58350"}],"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\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=58350"}],"version-history":[{"count":1,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/58350\/revisions"}],"predecessor-version":[{"id":58351,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/58350\/revisions\/58351"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/58210"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=58350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=58350"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=58350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}