Lyxor Asset Management

Top 400 Ranking: 102http://www.lyxor.com

Request More Information

Lyxor

Global Macro Holds Tight On European Currencies’ Shorts

Global risk appetite remained steady during the recent months, despite continued investor concerns over asset price valuation and political risks. 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.

Hedge fund performance has been disparate across strategies. Event Driven funds extended their winning streak in May, fueled by Merger Arbitrage. In parallel, Macro strategies underperformed, on the back of long positions on the USD and on hard commodities.

In terms of positioning, it is striking to note the extent to which CTAs and Global Macro now differ with regards to European currencies. In the context of improving economic momentum in the Eurozone and snap general elections in the UK, CTAs have rushed to the exit, trimming down net short positions on the EUR and the GBP vs. USD. In parallel, Global Macro funds hold tight on their European currencies’ shorts.

Going forward we maintain a preference for bottom up strategies versus top down ones. That implies a preference for Event Driven and L/S equity compared to Global Macro and CTAs. Trend followers are, in our view, too reliant on trends in equity markets. Within Global Macro, we prefer multi asset funds compared to specialists on a single asset class. Finally, within the fixed income and credit space we have a preference for market neutral players in light of the very tight credit spreads which may hurt directional players at some point.

Head Office
Tours Société Générale
17 Cours Valmy
Paris La Défense
F-92987
France
Company website:
http://www.lyxor.com
Parent Company:
Société Générale
Year Founded:
1998
No. of investment offices worldwide:
12

Browse this manager's…

What’s new

  • euro appreciation catches global macro off guard

    Euro Appreciation Catches Global Macro Off Guard

    White papersMon, 7 Aug 2017

    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. This is having far reaching market implications. 

  • merger arbitrage leads the pack in july

    Merger Arbitrage Leads the Pack in July

    White papersMon, 31 Jul 2017

    Risk assets were again on the rise in July and several asset classes broke records. 

  • tech stocks roar ahead and fuel stockpicking strategies

    Tech Stocks Roar Ahead And Fuel Stockpicking Strategies

    White papersMon, 24 Jul 2017

    A rising tide lifts all boats. The sharp outperformance of technology stocks lifted the S&P 500 to new records last week; as the sector represents 23% of the index nowadays. In turn, the MSCI World also reached new records, considering the huge weight of U.S. stocks (59%) in the benchmark. 

  • more balanced ahead of the summer

    More Balanced Ahead of the Summer

    White papersTue, 18 Jul 2017

    Risk assets range-traded before rallying after Yellen’s dovish testimony before Congress and amid positive economic prints in the U.S. and Eurozone. Releases in the U.S. suggested healthy activity and job growth. European data were consistent with a sustainable recovery. 

  • hedge funds lose momentum as ctas and macro struggle

    Hedge funds Lose Momentum as CTAs and Macro Struggle

    White papersThu, 13 Jul 2017

    Risk aversion rose over the course of June, as investors grew worried about the ability of the U.S. administration to move forward with expected reforms. 

Search all our content