In April, CTAs benefitted from the robust
\nperformance of equity markets, as well as from the
\nrebound of the U.S. Dollar Index and commodity
\nprice movements.<\/p>\n
Early May, as market concerns about trade wars
\nresurfaced and impacted negatively risk assets,
\nCTAs appear nonetheless to be resilient thanks to long fixed income and long US Dollar positions.<\/p>\n
Our views on CTAs stay neutral, which means that we recommend a 10-15% allocation to CTAs in a hedge
\nfund portfolio over the next 6 to 12 months.<\/p>\n
Concurrently, strategies such as Special Situations and L\/S Equity Directional also outperformed in April,
\nfueled in part by their structurally high equity market beta, in relative terms.
\nOn a negative note, L\/S Equity Market Neutral continued to underperform last month, in a context where its
\nsensitivity to the momentum risk factor in equities increased, according to our estimates.<\/p>\n
Merger Arbitrage also underperformed in April, though returns were in positive territory. We keep an OW
\nstance on Merger Arbitrage, which offers a low correlation to equities and a low volatility in returns.<\/p>\n
For the second month in a row, CTAs outperformed
\nhedge fund strategies in April. According to the Lyxor
\nCTA peer group, the strategy was up +1.6% in April,
\nwhich brings the year-to-date performance close to
\n+5%. <\/p>\n","protected":false},"author":1,"featured_media":80205,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1483],"tags":[1687,1655,1658,1723,1690,1651,2087,1814,2068,1672],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/80207"}],"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=80207"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/80207\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/80205"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=80207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=80207"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=80207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}