After a strong October, Alternative UCITS funds produced slightly negative returns on average in November, according to the latest LuxHedge Alternative UCITS market overview.
The LuxHedge Global Alternative UCITS index lost 0.13 per cent during the month, bringing YTD gains to 2.16 per cent. The total universe currently consists of well over 1400 funds, with four out of 10 posting gains in November and largely more than 75 per cent in positive territory year-to-date. In line with the trend of past months and years, investors kept increasing Alternative UCITS allocations again in November. Assets under Management for the total universe increased with +0.7 per cent and currently stand at EUR454 billion.
Most strategies lost some ground during the month of November. In the slipstream of a -2 per cent decline in European equities, the LuxHedge Equity Long/Short Europe UCITS Index lost 0.28 per cent in November (+3.48 per cent YTD). Also most Market Neutral funds could not avoid negative territory: LuxHedge Equity Market Neutral UCITS Index -0.30 per cent (YTD +2.19 per cent). Fund selection proved once more to be the key to performance in this space. A bit less than half of the Equity Market Neutral Funds decoupled nicely from equities and posted a positive performance, the best funds even returning in the +2 per cent to +4 per cent area for the month. Event driven funds had their worst month of the year with only 1 in 15 funds showing a positive return in November: LuxHedge Event Driven & Merger Arbitrage UCITS Index: -0.84 per cent (YTD +3.49 per cent).
In line with the global hedge fund market, CTA & Managed futures strategies proved their worth in diversifying a balanced portfolio when equities fall. The LuxHedge CTA & Managed Futures UCITS Index increased with +0.57 per cent in November, resulting in a nearly flat +0.13 per cent year-to-date performance. Discretionary Global Macro funds declined very slightly with -0.08 per cent.
In line with the general Alternative UCITS market, there was a slightly negative return in November for both Fund of Funds (-0.20 per cent) and Multi Strategy funds (-0.10 per cent).