On average, Alternative UCITS funds suffered during October’s market correction with almost every strategy index showing a negative performance, according to LuxHedge’s latest market overview.
The LuxHedge Global Alternative UCITS Index posted a loss of -1.67 per cent, bringing YTD down to -3.08 per cent, the worst drawdown since early 2016. Only one out of five index constituents has been able to post positive results since the beginning of 2018.
LuxHedge says: “Many Equity Hedge strategies suffered from a net positive beta in October with the LuxHedge Equity Long/Short UCITS index declining 2.90 per cent (-3.71 per cent YTD). In line with the underlying regional equity markets, managers focusing on US and AP had the most difficulties, with the Long/Short indices declining respectively 4.64 per cent and 5.30 per cent. Also Equity Market Neutral managers could not produce positive results on average with the LuxHedge Equity Market Neutral index declining 1.31 per cent during the month of October. Overall, one out of three Market Neutral UCITS managers is able to generate positive results so far in 2018.”
“Fixed Income Alternative UCITS had a difficult month of October too with the Rates Long/Short index posting a -1.05 per cent loss and the Credit Long/Short index declining 0.72 per cent. After large gains in September, the Discretionary Macro UCITS Index posted a 1.10 per cent loss in October. CTA & Managed Futures UCITS keep having a very difficult 2018 with the index declining 2.40 per cent in October, bringing YTD down to -6.68 per cent. Mainly Trend following strategies struggle in 2018 with almost all Trend Following CTA UCITS posting negative results this year.”
