Commodity trading advisors (CTAs) and trend-following hedge funds made a significant comeback in September, with Quantedge Global Fund, which gained over 8% over the month, bringing its year-to-date return to 29.36%, leading the way, according to a report by Institutional Investor.
According to an its website, Quantedge employs a systematic quantitative investment strategy, diversified across various asset classes, including equities, bonds, commodities, currencies, and insurance-linked securities.
Mulvaney Global Markets Fund meanwhile, a systematic long-term trend-following programme, posted a 3.1% increase in September, marking its first profitable month in four months, with the fund’s biggest gains coiming from metals and interest rate positions.
Despite some recent struggles, Mulvaney surged 124% in the first quarter and is now up 72.66% for the year. The majority of its gains so far have been driven by soft commodities. The fund’s portfolio includes agricultural, energy, metal, and financial futures, focusing on markets such as metals, energy, crops, livestock, currencies, and interest rates.
The DUNN World Monetary & Agriculture Program saw a more modest 1.03% gain in September, breaking a five-month losing streak and lifting its year-to-date gain to 10.46%. A version of the same strategy with half the leverage gained 0.55% for the month, and is now up 6.06% for the year.
DUNN’s September gains were driven by fixed income, metals, currencies, and stocks, which more than offset moderate losses in agriculture, energy, and volatility.
Another September winner was the the Aspect Diversified Fund, which posted a 1% gain for the month, pushing year-to-date performance to 11.6%, with the fund benefitting from long fixed-income positions, driven by interest rate cuts. The weaker US dollar also boosted performance, particularly through its short dollar exposure, although performance in stock indices proved challenging.
Not all funds enjoyed a positive month, however, with the Tulip Trend Fund seeing a 2.3% loss in September, reducing its year-to-date gain to 1.8%.
