Hedgeweek Americas Awards: CTA hedge funds rally in rollercoaster markets
With CTAs and trend-following managers maintaining their positive run this year after enduring a turbulent and unpredictable 2020, the Best CTA Hedge Fund category at this year’s Hedgeweek Americas Awards will highlight how such strategies are successfully positioning for trends as markets continue on their rollercoaster ride.
Three funds have been nominated in the category at this year’s event, which takes place in New York on 21 October: Belmont Investments’ Belmont Commodity Trend Fund, Gresham Investment Management’s GreshamQuant - ACAR Fund, and Ramsey Quantitative Systems Inc’s Global Asset Allocation Master Fund.
The Belmont Commodity Trend Fund uses a systematic investing approach to bring together long-term trend following, short-term trend following, and short-term momentum to its investment universe. The GreshamQuant ACAR Fund uses trend-following technology to trade a diversified set of more than 60 commodity markets, which also includes exposure to certain access-constrained frontier commodity markets to help diversify the portfolio composition.
The RQSI Global Asset Allocation Master Fund meanwhile has a target investment universe of 60-plus global futures markets, trading long and short across different asset classes, geographies, sectors and duration, using short equity directional signals to provide diversification and long and short directional commodity bets to capitalise on risk on/risk off market moves.
Lately, managed futures funds have successfully capitalised on commodities’ continued upward path, while also capturing directional moves in bond markets, which has helped stave off the challenges brought by more uneven trend patterns in equities. Earlier, CTAs had to overcome a tricky early start to 2021, which saw volatility tear through the sector, leaving many managers in the red.
Year-to-date, CTAs have generated gains of 7.18 per cent, more than double their full-year returns of 3.12 per cent, as measured by Societe Generale’s SG CTA Index, a key industry benchmark which tracks the daily returns of 20 of the largest managed futures hedge funds. Meanwhile, the SG Trend Index – which measures the gains and losses of the biggest trend-following hedge fund strategies – is up almost 9 per cent so far this year, outflanking 2020’s annual 6.24 per cent return.
The Best CTA Hedge Fund Award is one of 29 fund manager categories voted for by participants within the hedge fund industry itself and announced at an exclusive presentation ceremony and industry networking event held at The University Club of New York on 21 October.
Hosted by Hedgeweek, with fund manager data being provided in partnership with Bloomberg, the Awards honour excellence among hedge fund managers and service providers in the Americas region, and represent an important mark of recognition and respect among peers, investors, advisors, and counterparties.