The Newedge CTA and Trend Indices decreased in August, finishing down 1.75 per cent and 2.53 per cent respectively.
Commodity strategies, as represented by the Newedge Commodity Index and its sub-indices, were positive in August, while the Newedge Macro Indices encountered a difficult trading environment.
The top year-to-date performer through August remains the Newedge Commodity Trading Index (Equity), which has returned 13.30 per cent over the eight-month period.
Performance of the Newedge Short-Term Traders Index remains positive on the year (+1.94 per cent) and continues to display differentiated returns from longer-term strategies.
Ryan Duncan, global co-head of Newedge’s advisory group for alternative investment solutions, says: “Trading environments for directional strategies, and particularly trend-followers, remain challenging. After a good start to 2013, the Trend Index has now fallen 9.51 per cent since April, turning negative for the year. Nonetheless, we continue to see dispersion amongst and within strategies across the managed futures space. Such an environment highlights the importance of diversification across manager styles.”