Bringing you live news and features since 2006 

Up arrow

Hedge funds up +0.3 per cent amid cautious stance, says Lyxor

RELATED TOPICS​

Risk-on sentiment bolstered hedge funds’ returns last week with Lyxor’s Global Hedge Fund Index up 0.3 per cent. The most directional strategies outperformed, including L/S Equity along with Special Situations strategies.  

Other strategies though, were flat.
 
The rise in equities and the JPYUSD depreciation supported CTAs, but long energy positions eroded some of their gains.
 
Overall, all hedge fund strategies refrained to add risk within portfolios. Global Macro strategies turned more bearish lately. L/S Equity shaved off their directionality and strengthened their defensive tilt. Their net exposure to equities remains nonetheless significant.
 
Lyxor writes: “Merger Arbitrage strategies have staged a healthy rebound since end of April, due to tighter deal spreads. They particularly benefitted from the merger approval on AT&T vs. Time Warner in June, which paved the way for other vertical integrations.”
 
“Strategies hold top positions in Media stocks especially. This sector enjoyed a large wave of consolidation globally. The bidding war for the control of Sky by Fox, Disney and Comcast is a good illustration of the buoyant corporate activity in this sector. The uptick of Sky’s share price since mid-June fuelled managers’ returns.”
 
“The DoJ decision to appeal on the AT&T-TW deal may rekindle some uncertainties around vertical deals.  According to FactSet, analysts estimated that the S&P500 earnings will grow by 20 per cent in Q2 2018, which may mark the second highest growth since Q3 2010.”
 
“Since the end of Q1, analysts have revised up their bottom-up EPS estimates by 0.8 per cent, with upward revisions in five sectors. Energy and IT enjoyed the largest increase in expected earnings growth year-on- year in Q2. Base effect contributed to explain the exceptional expected earnings growth in Energy (+142.5 per cent). Both sectors outperformed since 31 March.”
 
“In average, analysts used to reduce their EPS forecasts ahead of the start of the earnings season. Yet, upward revisions did not prevent companies to surprise positively so far. With 28 companies having reported their results so far in the US, 82 per cent of them bet earnings estimates and 90 per cent surprised on revenues.”

Latest News

European ETFs raised USD47.8 billion in Q1, a 15 per cent increase compared to the same period in 2023, according..
LSEG Lipper’s March report finds that globally equity ETFs (+EUR113.2 billion) enjoyed the highest estimated net inflows for the month,..
Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by