- Advertisement -
- Advertisement -

Related

CTAs adjust long fixed income exposure amid rising bond yields

Powering Hedge Funds

Stockholm (HedgeNordic) – As fixed income markets have faced some pressures lately, CTAs have sharply adjusted their long exposures to the sector. Trend followers have even turned their US fixed  income exposure and is now short duration in US bonds. Meanwhile their long European fixed income exposure has been massively shaved off, from 87% of net assets to 24% in a single week (from October 4th to October 11th), Lyxor reports in its latest weekly brief.

Instead CTA managers have piled up on long energy positions, and is now net long from being net short a few weeks ago.

Lyxor holds a neutral weight to CTAs and downgraded the strategy in mid-September from overweight. The reduction was based on the perception that the long fixed income exposure was too aggressive. Lyxor stand ready to re-weight the strategy but deteriorating conditions for trend following, as reported by the SG Trend Indicator, makes the asset manager hold back for now.

The Lyxor CTA Broad Index has struggled in October and is down 3.8% for the month,. bringing year-to-date returns to -2.4%.

Picture: (c) bluebay – 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

Beyond the Top Ten: Sweden’s Top-Performing Hedge Funds in 2025

While Denmark may have matched and even overtaken Sweden’s hedge fund industry in terms of assets under management during 2025, Sweden continues to stand...

Round Table: Operational Challenges

The role of the Chief Operating Officer in asset management continues to expand, as operational challenges grow in both scope and complexity. Once centred...

Taiga Defies Nordic Equity Headwinds with High Returns

While Nordic equities struggled to keep pace with global equity markets in 2025, Nordic small-cap-focused long/short equity fund Taiga Fund advanced 22.6 percent, marking...

Macro Calls and Timing Drive Excalibur’s 2025 Result

Low double-digit returns may not typically command the spotlight. For a low-risk fixed-income macro hedge fund, however, such an outcome can represent an achievement. Excalibur...

Former IPM Colleagues Reunite as Hanna Persson Joins Tidan

Fast-growing fund boutique Tidan Capital has appointed Hanna Persson as Head of Business Development and Investor Relations. The appointment reunites Persson with Serge Houles,...

Pasi Havia to Invest in Megatrend-Driven Stocks at United Bankers

After departing Helsinki Capital Partners (HCP) in late 2025 following more than a decade at the boutique, portfolio manager Pasi Havia is now joining...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.