Eight of Newedge’s 11 hedge fund indices showed positive performance during the month of April.
The Newedge Trend Index increased 3.85 per cent in April, followed by the Newedge CTA Index, which gained 1.45 per cent. The Newedge Trend Index and Newedge CTA Index have risen 7.67 per cent and 4.36 per cent, respectively, for the year.
The Newedge Short-Term Trading Index was up 1.29 per cent in April and 4.86 per cent for 2013.
The Newedge Commodity Index (Trading) had the worst performance during the month and was down 1.38 per cent.
The Newedge Trend Index, which is equally weighted, calculates the daily rate of return for a pool of the largest 10 trend following based CTAs that are willing to provide daily returns and are open to new investment.
The Newedge CTA Index, which is equally weighted, calculates the daily rate of return for a pool of the largest twenty CTAs that are willing to provide daily returns and are open to new investment. Both indices are rebalanced and reconstituted annually.
The Newedge Short-Term Traders Index is designed to track the daily performance of a portfolio of the largest ten short-term, diversified CTAs who have less than a 10-day average holding period, are willing to provide daily returns and are open to new investment.
The Newedge Volatility Trading Index is a performance measure for the volatility trading and arbitrage style within the hedge fund universe. It is an equally weighed portfolio of volatility trading and arbitrage funds.
Ryan Duncan, global co-head of Newedge’s advisory group for alternative investment solutions, says: “CTA strategies continue to perform well in 2013. Through April, the Newedge CTA Index has produced five consecutive positive months of performance. Trend following strategies, as represented by our Newedge Trend Index, have found success as well, up 7.67 per cent in 2013. After a difficult four year stretch, the Newedge Short-term Traders Index has completed its fourth consecutive positive month of performance. A run of this length has not been realised since 2008.”
