Arbitrage

The Lyxor Hedge Fund Index was up +0.8% in April, bringing year-to-date performance to +3.2%. 12 Lyxor Strategy Indices out of 14 ended the month in positive territory, led by the Lyxor L/S Equity Market Neutral Index (+3.9%), the Lyxor CTA Long Term Index (+3.0%) and the Lyxor Merger Arbitrage Index (+1.5%).

The Lyxor Hedge Fund Index was up +0.15% in February, bringing year-to-date performance to +1.73%. 8 Lyxor Strategy Indices out of 14 ended the month in positive territory, led by the Lyxor Fixed Income Arbitrage Index (+2.06%), the Lyxor L/S Equity Market Neutral (+1.65%) and the Lyxor L/S Equity Variable Bias Index (+1.59%)

Hedge funds have started 2013 on a high note; the Lyxor Hedge Fund Index was up +1.6% in January. Twelve Lyxor Strategy Indices out of 14 ended the month in positive territory, led by the Lyxor L/S Equity Market Neutral Index (+5.1%), the Lyxor L/S Equity Long Bias Index (+3.7%) and the Lyxor Special Situations Index (+2.6%)...

In a new report, Fitch Ratings says that credit investment strategies need to adapt to less directional credit markets and exploit carry and relative value opportunities, while carefully managing rising duration, idiosyncratic and liquidity risks.

Globally, in December, the Funds of Funds strategy (+1.09%) slightly outperformed the S&P 500 index. However, over the year, none of the hedge fund strategies could keep up with the stock market.