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Managed futures shine in January as Barclay CTA Index rises 1.96 per cent

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Managed futures gained 1.96 per cent in January, according to the Barclay CTA Index compiled by Fairfield, Iowa-based BarclayHedge, with all eight of the firm’s indices in profit for the m

Managed futures gained 1.96 per cent in January, according to the Barclay CTA Index compiled by Fairfield, Iowa-based BarclayHedge, with all eight of the firm’s indices in profit for the month.

‘Fear was in the driver’s seat in January as global equity markets spiralled lower,’ says Sol Waksman, founder and president of BarclayHedge. ‘Market weakness was fuelled by Société Générale’s unannounced liquidation of a vast fraudulent stock index futures position on a day when US markets were closed.’

Barclay’s Diversified Traders Index gained 3.28 per cent, while the Systematic Traders Index was up 2.21 per cent, Discretionary Traders by 1.21 per cent, Financial and Metals Traders by 1.08 per cent, and Agricultural Traders by 0.46 per cent.

‘Recession worries coupled with increasing anxiety over the credit crisis drove the US Federal Reserve to lower interest rates twice during the month,’ Waksman says. ‘CTAs that rely on trend-following methodologies for trade selection were properly positioned in anticipation of a rate decrease.’

The Barclay BTOP50 Index, which monitors the performance of the largest traders, rose 0.84 per cent in January.

BarclayHedge, formerly known as the Barclay Group, was founded in 1985 and actively tracks more than 6,600 hedge funds, funds of hedge funds and managed futures programmes. Barclay has created and regularly updates 18 proprietary hedge fund indexes and eight managed futures indexes used as performance benchmarks for the hedge fund and managed futures industries by institutional investors, brokerage firms and private banks.

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