The Lyxor Hedge Fund index of hedge fund returns showed a 0.94 per cent return in August, translating into 4.21 per cent for the year so far, according to Lyxor Asset Management, a division of the French bank Société Générale.

The top performing strategies over the month were Long/Short Credit Arbitrage (+4.43 per cent), Special Situations (+2.25 per cent), and Convertible Bonds and Volatility Arbitrage (+1.81 per cent).

However, the thematic Lyxor Emerging Market Index is down by 2.31 per cent.

The “Lyxor Hedge Indices” are investable, asset-weighted hedge fund indices. They are based on Lyxor’s hedge fund platform that covers all the major hedge fund strategies.

Under Lyxor’s definition, “special situations” is a strategy that encompasses a combination of investment processes targeting equities or bonds whose valuation is altered by a special situation such as spin-offs, industry consolidations, liquidations, reorganizations, share buybacks and other extraordinary corporate transactions that generate investment opportunities.