Following a strong June, CTAs continued to make gains and reported positive performance in July too, according to the lates performance figures from Societe Generale Prime Services for the SG CTA Indices.
The SG CTA Index was up +3.53 per cent, adding to gains of +8.49 per cent YTD. Trend followers continued to lead performance, as the SG Trend Index was up +4.84 per cent and now stands in double digits at +12.63 per cent YTD. In fact, it has been in positive territory for five out of seven months this year.
Trend followers continued to benefit from upwards trends in bonds, which contributed +0.63 per cent in July, and have resulted in gains of +12.21 per cent YTD. Trends in currencies, mainly long US Dollar, also provided tailwinds as they contributed +2.70 per cent at the portfolio level. In addition, equity indices contributed small gains, as markets rallied slightly in direction with established upward trends which had slowed down recently.
Tom Wrobel (pictured), Director of Alternative Investments Consulting, at Societe Generale Prime Services, says: “It is very encouraging to see that CTAs are enjoying a positive period, particularly trend following strategies, which have had a good year thus far. We will monitor if trends in bonds and currencies continue to provide performance in the second half of the year, as well as looking for new trends to emerge.”
