- Advertisement -
- Advertisement -

Related

Nordic CTAs Hungover After Stellar January

Powering Hedge Funds

Stockholm (HedgeNordic) – Nordic CTAs, as measured by the NHX CTA Index, enjoyed an exceptionally strong start to 2018, gaining 3.8% on average in January (86% reported) as market trendiness accelerated in various sectors. This was the largest monthly gain for the NHX CTA Index since January 2015. Much of these gains have apparently evaporated in early February, however, as equity markets plunged in an already-familiar domino style across the globe.

Nordic CTAs marginally outpaced global peers last month, with the BTOP50 Index advancing an estimated 3.1% in January. The BTOP50 Index, a widely-used benchmark for commodity trading advisors (CTAs), seeks to reflect a fair representation of the overall managed futures industry with regard to trading style and market exposure. In a similar fashion to certain Nordic CTAs, the BTOP50 Index fell an estimated 2.0% thus far in February. The SG CTA Index, another benchmark tracking the daily performance of major CTAs, retreated 1.4% during the first five days of February.

Such outstanding performance on the part of Nordic CTAs and their international peers in January was driven by solid upward trends in equity markets. The trendiness was not solely limited to equity markets, with the U.S. dollar continuing its decline against major currencies, and crude prices increasing to two-and-a-half-year highs as a result of falling inventories. However, a lot of momentum players and trend followers appear to have scooped huge losses so far in February, after the Dow Jones Industrial Average inexplicably plunged the most ever on a point basis at the beginning of the week in tandem with other global equity indices.

The RPM Evolving CTA Fund, which invests in CTA managers in the so-called “evolving phase”, was the best-performing fund among Nordic CTAs last month, gaining 13.1%. Estlander & Partners Alpha Trend II, a high leverage version of the Estlander & Partners Alpha Trend program, was up 12.2% last month. Lynx, a fund that uses a fully systematic model-based investment approach to identify trends and other patters in financial markets, gained 8.6% in January, though market conditions swapped the floor with Lynx’s models early this month. Lynx has retreated 11.3% this month through February 6.

Coeli Prognosis Machines, a systematic macro strategy that combines financial models with artificial intelligence to identify trends, was down 3.7% in January. IPM Systematic Currency Fund also featured among the most battered Nordic CTAs in January, reporting an estimated loss of 3.4%.

 

Picture © Khosro—shutterstock.com

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

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

Rare Valuation Gap Between Small and Large Caps

Over the past five years, Swedish small caps have oscillated between a 10 percent premium and a 10 percent discount relative to large caps,...

Protean Eyes Sweet Spot Between Active and Passive in Global Equities

In the second half of 2026, Swedish stock-picking boutique Protean Funds plans to launch a Global Aktiesparfond, a low-cost, actively managed global equity fund...

Calculo to Launch 3x Strategy and Return-Stacked Product

Since mid-2018, Philip Engel Carlsson has been running a systematic trend-following strategy focused exclusively on commodity markets. Three years ago, Calculo Capital introduced a...

Nominations for the 2025 Nordic Hedge Award

HedgeNordic is delighted to announce the nominees for the 2025 Nordic Hedge Award. The annual event aims to distinguish outstanding hedge fund managers from...

Jury Board to the 2025 Nordic Hedge Award

HedgeNordic proudly announces the jury board for the 2025 Nordic Hedge Award, assembling a group of experienced investment professionals from Nordic institutional investors and...

Veritas Looks Beyond Benchmarks to Frontier Markets for Carry

After several years of strong performance in fixed income, the easy gains in credit markets appear largely exhausted. With corporate spreads now hovering near...

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.