Lyxor

Several hedge fund strategies have momentum biases, in particular L/S Equity, and CTAs. Considering the fact that this rotation took place in a bullish environment, most hedge fund strategies ended the week in positive territory.

If past elections provide any guidance, prospects for a Trump reelection look slim. History suggests that a second term reelection almost always requires strong growth. In most past election campaigns, polls did not materially shift after October.

Momentum is a strategy which buys stocks trending higher and sells stocks on a downtrend within an index. It is systematic and has no considerations for earnings, valuation, or other fundamental metrics such as dividends.

Lyxor Asset Management is pleased to announce the appointment of Florence Barjou as Chief Investment Officer. Based in Paris, Florence will report to Lionel Paquin, CEO of Lyxor. She will join Lyxor’s Executive Committee as of October 5th, when her appointment becomes effective. Florence is taking over from Guillaume Lasserre, who is leaving the company to pursue new opportunities.

The Special Situations strategy went through a roller coaster since February. Typically, due to their long structural market beta, managers tend to underperform in risk-off episodes. However, as they also tend to look beyond short-term volatility, they usually rebound faster.