IndexIQ: Hedge Fund Replication Strategies Post Strong July

Aug 14 2017 | 6:34pm ET

All six of IndexIQ’s hedge fund replication strategies were positive in July, reinforcing the strong month reflected in most alternative investment measures. 

Returns for the company’s IQ Hedge family of indexes were led by the IQ Hedge Event Drive Index, up 1.32% in the month, followed by the IQ Hedge Global Macro Index, which returned 1.15% in the period. For the year to date, the group is led by the IQ Hedge Long/Short Index, up 9.11%, while all six are in the green for the year so far. 

 Name  Ticker      July      YTD
IQ Hedge Multi-Strategy IQHGMS 0.96% 4.20%
IQ Hedge Market Neutral IQHGMN 0.30% 1.69%
IQ Hedge Global Macro IQHGMA 1.15% 6.46%
IQ Hedge Event Driven IQHGED 1.32% 7.28%
IQ Hedge Long/Short IQHGLS 1.08% 9.11%
IQ Merger Arbitrage IQMNA 0.38% 5.54%


“Global markets began the month slowly as the European Central Bank and the Bank of Japan started taking a more hawkish approach to quantitative easing causing global bond yields to back up,” said Salvatore Bruno, IndexIQ’s chief investment officer. “Comments from U.S. Federal Reserve Chairwoman Yellen expressing deeper concern over the persistence of inflation weakness acted counter to this, and were the bullish signal that the markets needed to bounce back.” 

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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