Societe Generale-ownedLyxor reports that its hedge fund index was up by 3.1 per cent in 2012 (1.1 per cent in December).

In total, 11 Lyxor Strategy Indices out of 14 posted positive returns for the year, the top three performers being Long/Short Credit Arbitrage (12.1 per cent), Long/Short Equity Long Bias (11.2 per cent) and Fixed Income Arbitrage (10.5 per cent). Figures for December show that 12 Lyxor Strategy Indices rose, led by Merger Arbitrage (3 per cent) and Long/Short Credit Arbitrage (2.6 per cent).

The three Lyxor indices that fell over the year were L/S Equity Variable Bias which lost 0.5 per cent and CTA Short Term and Long Term, which dropped by 4 per cent and 6.7 per cent respectively.

“Managers have now implemented their constructive views about the start of 2013 and have put risk back on the table. Net long positions in financials in L/S equity portfolios and a majority of single-B rated papers among credit arbitrageurs’ holdings are testimony to this” says Stefan Keller, head of managed account platform research and external relations at Lyxor AM.

The Lyxor Hedge Indices are composed of funds selected by Lyxor Asset Management, available on its managed account platform.