The gross return of the SS&C GlobeOp Hedge Fund Performance Index for May 2017 measured -0.13%. Hedge fund flows as measured by the SS&C GlobeOp Capital Movement Index advanced 1.24% in June.
Global risk appetite remained steady during the recent months, despite continued investor concerns over asset price valuation and political risks, according to Lyxor's latest Hedge Fund Brief. The MSCI World is up 3.5% in Q2 as of early June*. Yet, sovereign bond yields remain very low and yield curves flattened, raising questions over investors’ confidence on the pace of economic activity going forward.
In reaction to the French legislative election results, Timothy Graf, head of macro strategy EMEA at State Street Global Markets, and Elliot Hentov, head of policy and research – official institutions EMEA at State Street Global Advisors, offer their views.
Hedge funds returned an average of +0.21% in May 2017, and aggregate returns are +3.20% YTD in 2017 according to eVestment’s Hedge Fund Industry Asset Flow Report. May performance was led by funds focused on corporate capital structures, while commodity and currency funds continue to be the primary drag on industry performance.
Seven weeks ago, UK Prime Minister Theresa May called a snap election with the aim of consolidating power for the Conservative Party ahead of negotiations to leave the European Union (EU). This high-risk political strategy has failed with the party losing its majority and the UK heading towards a hung parliament. Michael Browne, Portfolio Manager European long/short, looks at what this now means for investors and the UK economy.
The long journey to European Central Bank (ECB) policy normalisation continues in baby steps. The ECB left policy unchanged but acknowledged that the risks to the growth outlook are no longer “tilted to the downside” and that it does not foresee cutting interest rates over the medium term. This is eminently sensible – the ECB could neither credibly look the market in the eye and deny the improvement in the macroeconomic picture, nor claim that an interest rate cut might be needed soon.
Societe Generale Prime Services today announces the May 2017 performance data for its SG CTA indices.
SG CTA Index
Global risk appetite remained steady heading into June, despite continued investor concerns over asset price valuation and political risks. The MSCI World was up +1.5% in May, led by Japanese indices. Meanwhile, sovereign bond yields remain stubbornly low and yield curves flattened, particularly in the U.S., raising questions over investors’ confidence on the pace of economic activity going forward. As a result, the Dollar index fell -2% in May, despite the fact that Fed Fund futures are fully pricing in a rate hike at the mid-June FOMC meeting.
The BRI Long/Short Equity Index’s positive attribution in May was driven largely by exposure to Growth-focused names across both the Large and Mid-Cap universes with MidCap Value and the broad-index hedge detracting. BRI Dynamic Growth & Value Index represents the un-hedged portion of BRI Long/Short Equity Index:
LGT Capital Partners Ltd., a leading alternative investment specialist, has successfully completed the acquisition of European Capital Fund Management Ltd. (European Capital), a London- and Paris-based private debt manager, from Ares Capital Corporation. European Capitals’ Funds will remain managed by the same team led by Matthew Gordon Clark, Etienne Haubold, Stéphane Legrand and JC Morales Cortes.