Absolute Returns

BlackRock has launched the BlackRock Strategic Funds (BSF) Asia Pacific Absolute Return Fund. The Fund is designed for investors who are looking to boost their returns above traditional equity and bond exposures.

In our previous report we commented on the respective stance of Macro and CTA managers on the US currency and signaled we were more comfortable with the bearish USD stance of CTAs. We maintain that view, despite the latest comments from Boston Fed President Rosengren...

Market movements related to the new Fed guidance had a differentiated impact on hedge fund strategies. CTAs underperformed last week as a result of their long fixed income and short USD positions. Meanwhile, Global Macro managers outperformed.

The Lyxor Hedge Fund index was up a healthy +0.7% since the beginning of August, with progress in most strategies, supported by the positive performance of risky assets. The Bank of England’s activism and the Brexit timeline getting pushed back contributed toward easing investors’ fears. Meanwhile, a patient Fed kept the dollar and yields under pressure.

The winning streak for hedge funds continued last week with all strategies, besides CTAs, benefitting from the stabilization of market conditions. The Lyxor Hedge Fund Index was up 0.5%, bringing the month to date performance to a solid 1.6%.