IndexIQ: Hedge Fund Replication Strategies Start 2017 Strong

Feb 23 2017 | 8:46pm ET

Five of IndexIQ’s six hedge fund replication strategies were positive for the month of January as market trends in place since late last year largely continued.

The company’s IQ Hedge Event Driven Index led the table with a 1.7% gain in the month, while the IQ Hedge Long/Short Index gained 1.17%. The IQ Hedge Global Macro Index, which had declined slightly in December, bounced back to return 1.34% in January. 

Other gainers included the IQ Hedge Multi-Strategy Index, which rose 0.45%, and the IQ Merger Arbitrage Index, which gained 0.82%. The IQ Hedge Market Neutral Index was the sole decliner, dropping an essentially breakeven -0.02%.

Index returns through January 31, 2017 were as follows:


IQ Hedge Indexes

Name Ticker Jan-17
IQ Hedge Multi-Strategy IQHGMS 0.45%
IQ Hedge Market Neutral IQHGMN -0.02%
IQ Hedge Global Macro IQHGMA 1.34%
IQ Hedge Event Driven IQHGED 1.70%
IQ Hedge Long/Short IQHGLS 1.17%
IQ Merger Arbitrage IQMNA 0.82%

 

"The so-called 'Trump' market marched on in January, while international stocks had an additional tailwind following a drop in the dollar, also inspired by the President," said Salvatore Bruno, IndexIQ's CIO, in a statement. "This set the stage for what was another very positive month for liquid alternatives."

Designed as investable benchmarks that replicate the performance characteristics of sophisticated hedge fund strategies, the IQ Hedge series of indexes were originally introduced in 2007. They are now used as the basis of investment products worldwide, as well as benchmarks for advisors and hedge fund managers.

Rye, NY-based IndexIQ, bought by the asset management arm of insurance company New York Life in December 2014, is an issuer of liquid alternative products offered as indexes, ETFs, mutual funds, SMAs and model portfolios. 


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