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LuxHedge Global Alternative UCITS Index up 0.95 per cent in June

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The LuxHedge Global Alternative UCITS Index posted a gain of +0.95 per cent in June, bringing year-to-date results for the average fund up to +2.71 per cent. 

Four out of five funds have posted positive results so far this year. Most strategies are performing well according to the according to the latest LuxHedge Alternative UCITS Msrket Overview, with funds in Macro and Merger Arbitrage continuing to lead the pack.

LuxHedge says that Equity Hedge strategies are lagging behind the general market, mainly due to Equity Market Neutral funds which continue to struggle in 2019. The LuxHedge Equity Long/Short UCITS Index was up +0.90 per cent in June, +2.91 per cent YTD with strategies focussing on US and AP doing particularly well. In contrast, the LuxHedge Equity Market Neutral UCITS Index is having one of the worst years so far, with a flat performance of -0.02 per cent in June and a negative YTD result of -1.39 per cent. The underperformance is largely due to quant market neutral funds which were down -3.73 per cent on average this year.

Fixed Income Alternative UCITS strategies continue to edge higher with both Rates Long/Short UCITS (+1.24 per cent) and Credit Long/Short UCITS (+0.78 per cent) gaining ground in June. Within the Macro space, Discretionary Macro managers continue to have a very good 2019 as well: LuxHedge Discretionary Macro UCITS Index +0.75 per cent in June, +3.41 per cent in 2019. CTA strategies enjoy one of their best years sofar with the LuxHedge CTA & Managed Futures UCITS Index gaining +2.55 per cent in April, +7.51 per cent YTD.

Investors are shifting allocations within Alternative UCITS by quite a bit this year. Absolute Return Bonds and Absolute Return Multi Strategy funds increased their assets with more than 3BEUR in the second quarter, but the general trend was down again with the total Alternative UCITS space losing 20BEUR in assets (-4.9 per cent QoQ).

LuxHedge says that outflows are dueparticularly to a few very large funds that came under pressure (H2O, Standard Life, Merian), but asset outflows within equity long/short and multi strategy funds are more broadly spread across the space.

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