Following a challenging October and November, CTAs ended the year with positive performance, with the SG CTA Index up by 1.44 per cent and the SG Trend Index up 0.94 per cent in December.
However, the YTD figures were in negative territory and 2018 has been the most difficult year for the CTA Index and Trend Index on record. The SG Short-Term Traders Index reported positive performance as it was up +3.50 per cent in December and +1.96 per cent YTD.
The SG Trend Indicator showed that there were gains in equities and bonds, however, currencies contributed negative performance and are now -7.75 per cent YTD. Furthermore, there were losses in commodities but overall, they have performed positively this year and it is in fact the best sector YTD.
Tom Wrobel (pictured), Director of Alternative Investments Consulting, at Societe Generale Prime Services, says: “There is no doubt 2018 has been one of the most challenging years for CTAs, as their performance was hit largely by unfavourable market conditions. As we head into 2019, we will keenly observe if the environment for CTAs improves following the uplift in December.”
