The lead index figure from the Société Générale-owned asset manager Lyxor showed alternative investments performing positively overall in August. The Hedge Fund Index gained 0.4 per cent (up 2 per cent in 2012). Eleven strategies out of 14 ended the month in positive territory, led by the L/S Credit Arbitrage Index (up 1.5 per cent) and L/S Equity – Long Bias Index (up 1.5 per cent).

The credit rally helped the Special Situations Index gain 1.1 per cent and the Distressed Index 0.6 per cent, despite what Lyxor described as a rather defensive positioning of those funds. Solid equity markets and some revival in deal flow were supportive, the firm said, for merger arbitrage funds.

Commodities, both short term and trend followers, posted negative returns this month, down 1.7 per cent for the Long Term CTA Index and 0.8 per cent for the Short Term CTA Index respectively.

“While not outright good news, less negative economic news has been supportive as expectations had already been significantly adjusted downwards,” said Stefan Keller at Lyxor.