The Lyxor Hedge Fund Index was down -0.3% in December (YTD -0.2%). 3 out of 12 Lyxor Indices ended the month in positive territory, led by the Lyxor CTA Long Term Index (+3.5%), the Lyxor L/S Equity Variable Bias Index (+1.2%), the Lyxor Merger Arbitrage Index (+0.2%).

Slower and disparate global recovery. The end of 2013 optimism was tempered in Q1. EU recovery failed to gain traction under deflationary pressures. The Japanese momentum was cut short by its consumption tax. The pulse in China peaked during the summer. EM growth continued to moderate overall, with substantial country divergences. The US stood out. After an unusually weak and confusing Q1, growth snapped back in most of its economic sector, to the notable exception of housing.