- Advertisement -
- Advertisement -

Related

Nordic CTAs Caught Up in the Wrong Trends

Industry Report

- Advertisement -

Stockholm (HedgeNordic) – Nordic trend-following hedge funds started off 2019 on the wrong foot, as both stock and crude oil prices reversed the negative trends shaping up in the latter part of last year. Nordic CTAs, as expressed by the NHX CTA, had the worst month of all sub-categories in January, falling 1.5 percent on average.

Speedometer: The January performance of the NHX CTA Index relative to its best and worst monthly performance since 2010. Source: HedgeNordic.

The world’s largest CTA vehicles did not enjoy a great start to the year either. The Société Générale CTA Index, which tracks the performance of the largest 20 CTAs in the world including three members of the Nordic Hedge Index (NHX), declined 1.9 percent in January. The Barclay BTOP50 Index, composed of a slightly different group of large CTA funds, fell 1.8 percent. The broader Barclay CTA Index, which incorporates 541 vehicles, was down an estimated 0.4 percent, based on data from 72 percent of the group.

One in every three members of the NHX CTA registered positive returns in January. IPM Systematic Currency Fund and Innolab Capital Index were two of the biggest gainers. IPM’s Systematic Currency strategy gained 4.5 percent, reflecting substantial gains from its developed markets currency portfolio. The vehicle’s short Swiss Franc (CHF) and long Pounds Sterling (GBP) positions were the main contributors to last month’s performance.

Innolab Capital Index, which uses an autonomous investment robot to predict market movements in major stock market indices, was up 3.2 percent last month. Estlander & Partners Presto, which employs systematic short-term trend-following models, gained 2.3 percent. Its short-term focus helped the fund gain 8 percent last year when most trend-followers struggled. Runestone Capital Fund, which invests in US equity index volatility on a one-day forward basis based on statistical probabilities, gained 1.2 percent in the first month of the year.

 

Picture © Ollyy—shutterstock

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

Evli’s Co-Investment Strategy: Opening the Door to Direct Private Equity Deals

Co-investing alongside private equity funds has become increasingly important for institutional investors seeking greater control, reduced fees, and selective deal exposure. Once reserved for...

From Loans to Layers: Navigating the CLO Capital Stack

Collateralized Loan Obligations (CLOs) play an important role in credit markets by bridging the capital needs of corporate borrowers with the return objectives of...

The Changing Role of Private Credit in a New Interest Rate Environment

During the era of near-zero or negative interest rates, traditional fixed income delivered minimal returns, prompting investors to turn to private credit for higher...

Infrastructure: Building Blocks for a Sustainable Future

Infrastructure across many parts of the world is either decades old or, in some regions, barely existent. Against this backdrop, the need for infrastructure...

Investing in Nordic Infrastructure Through Partnership with the Public Sector

Infrastructure investment is often viewed as a public sector responsibility, heavily influenced by political priorities. However, the growing need for new infrastructure projects –...

Interrupted Momentum in Private Markets as Evergreen Structures Reshape Dynamics

The Manager Selection team at SEB Asset Management published their annual Private Markets Report in early April, which explores the shifting momentum across private...

Allocator Interviews

In-Depth: High Yield

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.