The Lyxor Hedge Fund Index was down 0.9 per cent in June, with three out of 10 Lyxor indices ending the month with a positive performance.
Low directional strategies fared better.
CTAs, with their defensive positioning, thrived on most of their positions. They once again confirmed their hedging benefit.
Merger arbitrage funds were reasonably isolated from the Brexit shockwave, benefiting from several deal completions.
“Brexit is likely to keep elevated assets volatility and result in greater differentiation across European markets. This should be generally beneficial for Hedge funds, for relative value and nimble styles in particular. Meanwhile, corporate activity involving a UK counterparty should get under more pressure, a source both of opportunity and risk for Merger funds,” says Jean-Baptiste Berthon (pictured), senior cross-asset strategist at Lyxor Asset Management.
