Tech Tremors Hurt L/S Equity

The recent correction in IT stocks led to a momentum reversal which had a negative impact on L/S Equity funds, down -1.3% last week. Market Neutral L/S, which tends to be sensitive to the momentum risk factor, were not left unscathed by sector rotations. Overall, the Lyxor Hedge Fund Index was down -1% last week, with only one strategy in positive territory: Fixed Income Arbitrage. On a positive note, Event-Driven was fairly resilient, down -0.3%, while Merger Arbitrage managed to outperform, up +0.2%.