Managed futures traders gained 0.87 per cent in July according to the Barclay CTA Index compiled by BarclayHedge. The Index is up 0.48 per cent year to date.
“A rally in the value of the US Dollar sparked by the expectation of imminent Fed tightening, coupled with fears of China joining Japan and the Eurozone on the loosening bandwagon generated gains for CTAs," says Sol Waksman (pictured), founder and president of BarclayHedge.
“Short commodity positions also contributed sizeable gains as the S&P GSCI plunged 14.3 pe rcent fuelled by the rising US Dollar, slowing demand from China, and too much oil."
Seven of Barclay’s eight CTA indices had gains in July. The Diversified Traders Index was up 1.14 per cent, Systematic Traders gained 0.98 per cent, Financial/Metals Traders added 0.76 per cent, and Currency Traders gained 0.64 per cent.
The Agricultural Traders Index was down 0.80 per cent, and was the only managed futures sector with a loss in July.
"Grain prices have been under a lot of pressure due to favourable weather conditions for crop growth in the US," says Waksman.
After seven months in 2015, Financial/Metals Traders have gained 2.82 per cent, Currency Traders are up 2.73 per cent, and Discretionary Traders have added 0.61 per cent.
The Diversified Traders Index is down 1.36 per cent for the year, Systematic Traders have lost 0.48 per cent, and the Agricultural Traders Index has moved into negative territory with a 0.44 per cent year to date loss.
The Barclay BTOP50 Index, which measures performance of the largest CTAs, gained 2.61 per cent in July, but remains down 0.64 per cent at the end of seven months.
