- Advertisement -

Related

Nordic CTAs show color in January

- Advertisement -

Stockholm (HedgeNordic) – CTAs once again showed their worth as portfolio diversifiers during the equity market turmoil in January. Major industry benchmarks such as the Barclay BTOP and the SG CTA Index (formerly known as the NewEdge CTA Index) jumped 3 and 4.2 percent respectively according to early estimates. This means that the losses experienced by many CTAs in December, were more than recovered during the first month of 2016.

Nordic CTAs also showed strong numbers during the month. Early estimates indicate that the average return was 4.2 percent, wiping out a 2.8 percent loss for the NHX CTA from December.

Among individual names, SEB Asset Selection Opportunistic, RPM Evolving CTA and IPM Systematic Macro stood out as the big net gainers on the month. The IPM-number should be viewed as particularly strong given that the program, unlike the CTA industry, made solid gains in December as well.

Judging from the monthly comments posted by Nordic CTA managers, the month’s performance was primarily driven by the fixed income sector where trend following strategies appear to have benefited from long positions in long-dated government bonds. Short positions in oil also seem to have contributed positively despite a run-up in prices towards month-end on speculations of production cuts from OPEC and Russia.

NCTAJan2016
Performance summary of Nordic CTAs – January 2016, not adjusted for risk. Source: HedgeNordic

Picture: (C) kentoh-shutterstock.com

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Jonathan Furelid
Jonathan Furelid
Jonathan Furelid is editor and hedge fund analyst at HedgeNordic. Having a background allocating institutional portfolios of systematic strategies at CTA-specialist RPM Risk & Portfolio Management, Mr. Furelid’s focus areas include sytematic macro and CTAs. Jonathan can be reached at: jonathan@hedgenordic.com

Latest Articles

HSBC’s Three Decades of Building Hedge Fund Portfolios

Hedge fund investing has become increasingly institutionalized and resource-intensive, requiring access to specialized managers alongside deep due diligence, portfolio construction, risk management, and ongoing...

The Benefits of Multi-Manager Portfolios in CTA Investing

At first glance, CTA investing can appear deceptively homogeneous. Many managers trade the same liquid futures markets and rely on systematic, trendfollowing models that...

Why Some Nordic Allocators Prefer Multi-Strategy Hedge Funds

Many institutional allocators spend years building portfolios of single-strategy hedge funds across different asset classes, geographies, and investment styles. Yet there is also a...

Allocators Seek Sharpe, Not Spectacle When Opting for Multi Managers

Global allocators are once again paying closer attention to multi-strategy and multi-manager hedge fund solutions. But unlike the years before the financial crisis, the...

Swiss Family Office Seeks $5 Million Allocation to Liquid Alternatives

A Swiss family office is seeking to allocate $5 million to liquid alternative investment strategies, including hedge funds, managed futures, commodities, and funds providing...

OP’s R2 Crystal Sees Stronger Case for Hedge Funds

For much of the past decade, hedge funds struggled to compete against strong beta-driven markets fueled by ultra-low interest rates and abundant liquidity. But...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -