Trend followers maintain momentum with early-year gains

Trend following

Société Générale’s CTA indices advanced between 2.5 and 3.5 per cent in the first three weeks of January, as managed futures strategies locked on to early-year trends in equity markets, currencies, and commodities.

The solid returns come on the back of a strong 12 months for trend followers, who enjoyed their best annual performance since the banner year of 2014. The SG CTA Index – which tracks the daily performance of a select pool of the largest trend-following managers - rose 6.26 per cent in 2019. The SG Trend Index made 9.23 per cent for the year, while the SG Short Term Traders Index – which measures the performance of CTAs and global macro funds running short-term strategies – climbed 3.67 per cent.

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