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CTAs deliver six consecutive months of gains, says Preqin

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The third quarter of 2014 was the best quarter for Commodity Trading Advisor (CTA) funds since Q4 2010, according to Preqin, and CTAs have now delivered six months of positive gains for the first time since 2008/09.

Preqin’s Q3 2014 Hedge Fund Quarterly Update report reveals that CTA returns of 5.52% in Q3 on top of 1.60% in Q2 have sent the benchmark to 2014 year-to-date returns of 7.13%. 

The recent  strong performance posted by CTAs though contrasts with poor performance delivered by long/short and event driven hedge funds, mirroring trends seen in Q2 2012 and Q3 2011.

According to the report, the average monthly return for long/short funds this year is just 0.3%, while long/short funds suffered their worst month (-2.06%) since May 2012 (-3.65%), when markets were rattled by the prospect of Greece leaving the Eurozone as voters backed anti-austerity parties.

North America-focused hedge funds declined in Q3 (-1.43%), and funds targeting European opportunities (-1.46%) also faltered amid continued concerns over slowing growth in the Eurozone.

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