The Lyxor Hedge Fund Index was up 1 per cent in February, with eight out of 10 Lyxor indices in positive territory.
CTAs outperformed thanks to their substantial long positions on equities.
Event driven were on the rise as M&A activity in the US remained robust.
On a negative note, fixed income managers lagged behind.
“CTAs delivered upbeat returns lately, fuelled by the rally in equities and commodities,” says Philippe Ferreira (pictured), senior cross-strategist at Lyxor Management. “Yet, the strategy is increasingly vulnerable to trend reversals as stock prices are unlikely to continue to rise at the current pace in the near term. In parallel, event-driven strategies, which outperformed year to date, appear to have the potential to pursue their upward trend on the back of a strong pace of M&A activity and corporate restructuring in the US.”
