Hedge funds

The world’s largest 100 alternative asset managers saw assets under management increase by 10% in 2016, rising to $4 trillion, according to the 2017 edition of Willis Towers Watson’s Global Alternatives Survey.

Mounting signals that the latest leg of the bond market rally has started to reverse fueled hedge fund strategies last week. Most recent inflation prints outpaced expectations both in the U.S. and the U.K., as consumer prices rose +1.9% and +2.9% year-over-year in August, respectively.

For the first time since October 2016, the monthly performance of Event-Driven funds was in negative territory. The strategy remains nonetheless the stellar performer in 2017, up 5.7% year to date according to the Lyxor Event Driven Broad index.

Intensifying stress over North Korea boosted most safe havens while dragging risk assets. VIX rocketed up, DM govies yields retraced, credit spreads widened, and gold progressed. This move quickly reversed upon signs of de-escalation...

The dollar continued to depreciate against major currencies over the recent weeks, in a context where the U.S. administration has struggled to gain reform momentum in the health care and fiscal areas.