All six of IndexIQ’s IQ Hedge Indexes recorded positive performance in September.
Returns were led by the IQ Hedge Long/Short Index, up 1.18 per cent for the month, followed by the IQ Merger Arbitrage Index, which returned 1.10 per cent in the period. The IQ Hedge Long/Short Index is also the top performing index in this family on a year to date (YTD) basis, up 11.02 per cent for the year through September.
“Global markets turned in strong performance in September with domestic indices lagging behind international,” says Salvatore Bruno (pictured), IndexIQ’s Chief Investment Officer. “Earlier in the month, a string of natural disasters caused mixed results in the markets and led to a Hurricane Harvey relief package that also included a deal with Congress to raise the debt ceiling and keep the government funded through December. The Fed officially announced its balance sheet reduction efforts, and the expectation of one more rate hike in December jumped, along with the possibility of three more hikes in 2018. The month closed out with tax reform dominating the headlines and while some within the administration believe tax reform can be passed in 2017, markets remained relatively stable as this has already been priced in.”
Designed as investable benchmarks that replicate the performance characteristics of sophisticated hedge fund strategies, the IQ Hedge Indexes comprise the first family of investable benchmark indexes covering hedge fund replication/alternative beta strategies.