Top Hedge Fund News, Member Posts, Hedge Fund Daily Indices and more!

3yrs ago Hedge Fund hedgeweek Views: 571

Wilshire Liquid Alternative Index up 3.01 per cent in April

Submitted 08/05/2020 - 11:27am

The Wilshire Liquid Alternative Index, which provides a representative baseline for how the broad liquid alternative investment category performs, returned 3.01 per cent in April, outperforming the 2.88 per cent monthly return of the HFRX Global Hedge Fund Index. 

The Wilshire Liquid Alternative Index family aims to deliver precise market measures for the performance of diversified liquid alternative investment strategies implemented through mutual fund structures, backed by a proprietary classification methodology.
 
“The markets recovered from a challenging March on the back of improved data surrounding the COVID-19 pandemic and continued economic support from the federal government,” says Jason Schwarz, Chief Operating Officer of Wilshire Associates.
 
The Wilshire Liquid Alternative Multi-Strategy IndexSM, which includes both single and multi-manager funds, returned 2.68 per cent in April.
 
The Wilshire Liquid Alternative Equity Hedge IndexSM ended the month up 4.93 per cent, outperforming the HFRX Equity Hedge Index’s return of 4.49 per cent.

Most equity hedge strategies experienced a recovery in April, with managers who withstood the brunt of March’s sell-off and maintained net long exposure experiencing the most gains.

Several factor reversals resulted in more muted performance for market neutral managers. Reversals may be attributed to rebalancing by active managers following the outsized volatility in the first quarter.
 
The Wilshire Liquid Alternatives Event Driven Index ended the month up 3.08 per cent, outperforming the HFRX Event Driven Index’s monthly return of 2.73 per cent.

Optimism surrounding M&A activity coupled with compressing deal spreads saw event driven managers, particularly merger- and special situation-focused managers, perform positively in April.
 
The Wilshire Liquid Alternative Global Macro IndexSM ended the month up 0.87 per cent, outperforming the HFRX Macro/CTA Index’s monthly return of 0.49 per cent.

Most global macro managers experienced a muted month of returns, with both systematic and discretionary managers quickly de-risking their strategies in response to the volatility in the first quarter.

CTAs experienced a mixed month, with most managers suffering from a trend reversal in equities and benefiting from continued turmoil in the oil markets. Exposure to government bonds and FX provided mixed results due to relatively range-bound movements in these markets.
 
The Wilshire Liquid Alternative Relative Value Index ended the month up 2.58 per cent, underperforming the HFRX Relative Value Arbitrage Index’s monthly return of 3.00 per cent.

Relative value convertible arbitrage managers experienced a small recovery during April as spreads compressed, but volatility remained high.

Relative value credit managers enjoyed a positive month as the Federal Reserve began buying corporate debt securities to support the market.

Author Profile Tags Results & performance Indexes

Today's Hedge Fund Headlines:

Log In for More
Access Over 250K+ Industry Headlines, Posts and Updates
Not a member yet?

Join AlphaMaven

The Premier Alternative Investment
Research and Due Diligence Platform for Investors

Free Membership for Qualified Investors and Industry Participants
  • Easily Customize Content to Match Your Investment Preferences
  • Breaking News 24/7/365
  • Daily Newsletter & Indices
  • Alternative Investment Listings & LeaderBoards
  • Industry Research, Due Diligence, Videos, Webinars, Events, Press Releases, Market Commentary, Newsletters, Fact Sheets, Presentations, Investment Mandates, Video PitchBooks & More!
  • Company Directory
  • Contact Directory
  • Member Posts & Publications
  • Alpha University Video Series to Expand Investor Knowledge
  • AUM Accelerator Program (designed for investment managers)
  • Over 450K+ Industry Headlines, Posts and Updates
ALL ALPHAMAVEN CONTENT IS FOR INFORMATIONAL PURPOSES ONLY. CONTENT POSTED BY MEMBERS DOES NOT NECESSARILY REFLECT THE OPINION OR BELIEFS OF ALPHAMAVEN AND HAS NOT ALWAYS BEEN INDEPENDENTLY VERIFIED BY ALPHAMAVEN. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THIS IS NOT A SOLICITATION FOR INVESTMENT. THE MATERIAL PROVIDED HEREIN IS FOR INFORMATIONAL PURPOSES ONLY. IT DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY INTERESTS OF ANY FUND OR ANY OTHER SECURITIES. ANY SUCH OFFERINGS CAN BE MADE ONLY IN ACCORDANCE WITH THE TERMS AND CONDITIONS SET FORTH IN THE INVESTMENT'S PRIVATE PLACEMENT MEMORANDUM. PRIOR TO INVESTING, INVESTORS ARE STRONGLY URGED TO REVIEW CAREFULLY THE PRIVATE PLACEMENT MEMORANDUM (INCLUDING THE RISK FACTORS DESCRIBED THEREIN), THE LIMITED PARTNERSHIP AGREEMENT AND THE SUBSCRIPTION DOCUMENTS, TO ASK SUCH QUESTIONS OF THE INVESTMENT MANAGER AS THEY DEEM APPROPRIATE, AND TO DISCUSS ANY PROSPECTIVE INVESTMENT IN THE FUND WITH THEIR LEGAL AND TAX ADVISERS IN ORDER TO MAKE AN INDEPENDENT DETERMINATION OF THE SUITABILITY AND CONSEQUENCES OF AN INVESTMENT.