Hedge funds recover post-Brexit

French asset manager Lyxor’s hedge fund index was up by 0.8% last month as market concerns over the strength of the US economy and the Brexit impact eased. This led to a rebound in risk assets. Seven out 10 of Lyxor’s hedge fund indices ended July in the black with the rally in global markets fuelling the most directional strategies, such as special situations and long/short equity bias leading the pack, up 3% and 3.4% respectively. Special situations recovered from losses in June due to investments in names such as Allergan, Akorn, Baxter and Microsoft. Sectors such as consumer non- cyclicals, basic materials and communications also paid off. Within long/short equity bias, long bias managers picked up the most returns. From a regional perspective, US funds managed to better capture the market upside thanks to higher beta. European managers’ returns were less profitable as managers significantly reduced their exposure post-Brexit However, the depreciation of the dollar did impact global macro strategies which incurred losses of -1.15%. Managers sizeable long positions on the dollar vs the euro, pound and yen were the main causes of the losses which detracted the sizeable gains they had made before the meeting of the Federal Open Market Committee which is thought to have caused the slump of the dollar. ©2016 funds europe

Executive Interviews

INTERVIEW: ‘It is what it is’

Dec 22, 2016

Jeff Conway, regional chief executive for State Street, talks to David Stevenson about regulation and how the firm will handle the challenge of tech disruption.

MASHREQ CAPITAL INTERVIEW: A new direction

Dec 22, 2016

The new chief executive of Mashreq Capital talks to George Mitton about fund launches, management style and why he is the right person for the job.

Roundtables

SEC LENDING ROUNDTABLE: Both a borrower and a lender be

Jan 11, 2017

Industry heavyweights, including agent lenders, discuss issues affecting the securities lending sector such as regulation and the types of collateral being used.

EMERGING MARKETS ROUNDTABLE: The re-emergence

Jan 03, 2017

2016 was the year emerging markets returned to the spotlight, as they regained ground since the 2012 sell-off. Funds Europe asked our panel if this appetite will persist in 2017.