Hedge funds indices were overall positive during the past week but most strategies contributed negatively, according to the latest Weekly Brief from Lyxor’s Cross Asset Research team.

Lyxor writes: “CTAs, which are short USD and long energy retracted, while Diversified and Neutral L/S Equity funds destroyed some alpha this week, reflecting counter-intuitive sector rotations. 


“By contrast, the sudden reversal in many M&A deal spreads contributed to boost Merger funds. The average deal spread of our basket of 75 tradable merger deals reverted back to 7 per cent from 10 per cent a week ago.”