Arbitrage And Long-Equity Biased Hedge Funds Outperform

Other than stating the obvious about the success of event driven hedge funds and losses of EM focused strategies, the latest quarterly report from Natixis also points out the relative gains of an arbitrage strategy. The rise in profits was predicted by other analysts as well since cross-asset correlation has been falling over the last few months. The lower correlation between equity market and treasury indices combined with lower volatility put arbitrage strategies in a comfortable position in Q1. Convertible arbitrage wins as bond investors look for equity exposure According to Natixis, in the lead was Convertible Arbitrage which returned 2.5%…