Market Overview & Indices

LuxHedge Monthly Reports

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Global Alternative UCITS

The LuxHedge Global UCITS Index covers the whole universe of UCITS compliant alternative funds that have assets under management higher than EUR 20 million and a track record of at least 6 months. Each fund is equally weighted within the index.

Equity Hedge UCITS

Equity Hedge strategies take both long and short exposures to equity markets, in a UCITS context using equity derivative securities to achieve the short leg. This category contains both Long/Short funds who typically maintain a small but positive exposure to equity markets and Equity Market Neutral funds who aim for a zero correlation.

2018 April reports available upon request

 

  • Equity Long/Short UCITS
  • Equity Market Neutral UCITS

Fixed Income Alternative UCITS

Fixed Income Alternative UCITS span a wide range of strategies that seek long and short exposure to different fixed income securities, from long/short strategies on rates and credit to pure arbitrage strategies. A large group of Absolute Return Bond funds typically have a long credit bias but use an unconstrained (often multi asset credit) investment approach with interest rate / currency hedging and tactical L/S overlay strategies to achieve aboslute returns that are unconstrained by a benchmark. The Fixed Income Alternative group also includes convertible arbitrage funds who specifically invest based on an expected behaviour of the price difference between a convertible security and a related non-convertible security. In the context of UCITS, Credit Default Swaps (CDS) are very often used to gain short exposure in fixed income.

2018 April report available upon request

 

  • Fixed Income Alternative UCITS

Event Driven & Merger Arbitrage UCITS

Event driven funds seek to exploit pricing inefficiencies that may occur before or after a corporate event such as mergers, major restructurings, financial distress or other major company events. The subset of Merger Arbitrage funds aims to capture the spread between the announced acquisition price and the price at which the target’s stock price trades post news announcement.

2018 April report available upon request

 

  • Event Driven & Merger Arbitrage UCITS

Macro UCITS

Macro funds take a broad top-down view of markets, looking at how they move due to large developments, aiming to spot long or short term investment opportunities in equity, interest rate, commodity or currency markets. Discretionary Macro funds (Global Macro, EM Macro, Macro Bonds) look at macro-economical data and take a fundamental research approach whereas Systematic Macro funds use these inputs in quantitative models. CTA/Managed futures funds also employ algorithmic and quantitative methods, but apply them to price data. This segment contains trend following funds, short term traders and more broad CTA quant strategies. A smaller group of currency trading funds uses top-down analysis of macroeconomic variables to make predictions on the future movement of different foreign exchange markets. The Macro group also includes Commodity Long/Short funds that seek exposure to commodities like oil, gold or silver, often looking at trends or momentum in the underlying commodity asset.

2018 April reports available upon request

 

  • Discretionary Macro UCITS
  • CTA & Managed Futures UCITS
  • Currency Trading UCITS
  • Commodity Long/Short UCITS

Multi Asset Alternative UCITS

The group of Multi Asset Alternative UCITS comprises a wide variety of strategies, ranging from Quantitative Alternative Risk Premia over Risk Parity to Multi Asset Long/Short and Absolute Return (target return) funds. Also Volatility Trading funds are taken up in this category. These funds trade volatility as an asset class through the implied volatility inherent in options, often aiming to benefit from an imbalance between implied and realized volatility.

2018 April reports available upon request

 

  • Alternative Risk Premia UCITS
  • Multi Asset Long/Short and Absolute Return UCITS
  • Volatility Trading UCITS

Diversified Strategies UCITS

The Diversified Strategies group includes funds that seek exposure to a portfolio of different underlying Alternative strategies like equity long/short, relative value fixed income, macro, … aiming to provide diversification across different styles. Multi Strategy funds make use of (different) internal investment teams to manage each of the sub-strategies of the fund. Multi Manager funds work similarly, but the responsibility to manage sub-strategies is delegated to different external investment managers. Fund of Funds gain exposure to different sub strategies by investing in units of other Alternative UCITS funds.

2018 April reports available upon request

 

  • Multi Strategy & Multi Manager UCITS
  • Alternative Fund of Funds UCITS