CTAs and managed futures hedge funds gave back their early-month gains during October’s market reversal, but they managed to stay generally flat for the month as equities tumbled to their second consecutive monthly loss.
Commodities & Resources
In recent years, the relative underperformance of hedge fund strategies compared to the S&P 500’s returns prompted many institutional investors to cast doubt on the value of this industry to their portfolios.
Bitfinex Derivatives,a derivatives platform accessible through digital token trading platform Bitfinex, has launched a perpetual contract for Silver.
A victory for Joe Biden in next month’s US presidential election may “counter-intuitively” help boost global oil markets, according to London-based energy-focused hedge fund Westbeck Capital.
How China’s pork disruption is shaping contrarian hedge fund Russell Clark’s global crop price stance
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London-based oil-focused hedge fund Westbeck Capital’s flagship energy strategy suffered its biggest loss this year in last month’s violent market sell-off, shedding 15.2 per cent as its long oil equity positions were sent into a tailspin.
Managed futures strategies slumped to their worst month of the year in September, with trend-following hedge funds caught out by sharp reversals in momentum across several markets and asset classes.
The Lyxor Epsilon Global Trend Fund, Metori Capital’s long-running systematic managed futures strategy, remains well up in 2020, comfortably outperforming CTA benchmarks as trend-following hedge funds were caught out by reversals across across FX, commodities and equities in recent weeks.
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.
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.