Some quantitative trend-following hedge funds may be caught in a pincer movement between continued lukewarm performance on one side and ongoing investor aversion as a result of allocators being unable to perform deeper on-site due diligence on the other.
Commodities & Resources
Trend-following hedge funds’ “dynamic features” can limit losses amid surging bond yields and rising inflation
Managed futures hedge fund strategies may be well-placed to withstand a continuing rise in bond yields, despite CTA performance being squeezed by the recent surge, Lyxor Asset Management strategists say.
CF Benchmarks is to offer a PAX Gold (PAXG) daily settlement and spot rate, updated every second. PAX Gold from Paxos Trust Company is the first regulated digital asset backed token that represents premium gold bars.
Delbrook Capital, a Vancouver-based specialist metals-focused long/short equity hedge fund, has continued to capitalise on this summer’s soaring precious metal prices.
London-based oil-focused hedge fund Westbeck Capital suffered a small dip in July after failing to capitalise on strong oil equities returns – but the strategy still remains up almost 70 per cent so far this year, with the firm now strongly bullish on an imminent price surge.
Naysayers of the world’s reserve currency forget its potential as an asset in what are still crisis conditions, says RWC Diversified Returns Fund Manager Clark Fenton.
Despite recently hitting an all-time high, the price of gold is widely expected to increase further in the second half of the year, according to Kryptoszene.
Trend following hedge fund managers gained ground in July following a patchy first half of 2020, notching up their best monthly performance so far this year by capitalising on soaring gold prices and emerging trends against the US dollar.
As gold prices reach fresh highs, more hedge fund investors could pile into the commodity – heralding fresh spikes of volatility in the asset, according to Christopher Cruden, manager of the currency and gold-focused CTA strategy Insch Kintore.
Hedge fund short sellers could soon be circling the troubled Russian gold miner Petropavlovsk, after Polygon Global Partners built a sizeable short bet in the London-listed company, which is facing major governance issues.