- Advertisement -

Related

Nordic CTAs Stumble Again in Risk-Off Environment

- Advertisement -

Stockholm (HedgeNordic) – Following a three-month run of positive performance, Nordic CTAs fell 0.8 percent on average in May (94 percent reported). The aggregate performance of Nordic CTAs remains in positive territory for the year at 0.5 percent.

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

The NHX CTA, which currently comprises 18 constituents, outperformed the world’s largest CTAs last month but trailed the broader CTA industry both in May and year-to-date. The SG CTA Index, which tracks a pool of CTAs selected from the larger managers that are open to new investment, declined 2.4 percent last month. The SG CTA Index, which includes three members of the Nordic Hedge Index, gained 2.2 percent in the first five months of 2019. The Barclay BTOP50 Index, which also tracks a select group of large investable CTAs, was down 1.7 percent last month, cutting the year-to-date performance to 3.2 percent. The broader Barclay CTA Index, which includes over 500 CTAs, was down 0.3 percent last month and gained 2.2 percent year-to-date through the end of May.

Five of the 18 members of the NHX CTA posted positive return for May. Estlander & Partners Alpha Trend II, a higher leverage version of systematic medium-term trend-following fund Estlander & Partners Alpha Trend, was last month’s best performing member of both the Nordic Hedge Index and the NHX CTA with a monthly gain of 12.6 percent. The double-digit increase brought the fund’s performance for the year back into positive territory at 0.3 percent.

Estlander & Partners Alpha Trend followed suit with a gain of 4.0 percent, which took the fund’s year-to-date return to 0.8 percent. RPM Evolving CTA Fund, a diversified multi-CTA fund, gained 3.0 percent in May as “smaller diversifying strategies managed to navigate the crisis-ridden market environment much better” than larger trend-following managers. Trend-follower Nordea 1 – Heracles Long/Short MI Fund, set to merge with another Nordea fund this month, and SEB Asset Selection were up 2.2 percent and 0.5 percent, correspondingly.

 

Photo by Nathan Dumlao on Unsplash

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

Simplicity Completes Norron Deal

Three months after announcing the deal, Swedish asset manager Simplicity has completed its acquisition of Norron’s fund management business, taking over the management of...

Rethinking the 60/40 Portfolio

The 60/40 portfolio remains one of investing’s most recognizable conventions, even where few institutional portfolios literally consist of 60 percent equities and 40 percent...

Diversification That Comes From Somewhere Else

Insurance-linked investments offer something increasingly difficult to find in institutional portfolios: return drivers that are fundamentally different from those behind equities and bonds. At...

Reinforce, Don’t Replace: Carrying the 60/40 Through the Fragile Decade

By Steven Braun at Newfound Research and Return Stacked® Portfolio Solutions: Despite its ambiguous origins, the 60/40 remains the default portfolio for investors approaching...

Varma: Practical Considerations for Embracing a Total Portfolio View

Finland’s Varma is one of several large Nordic asset owners that has been moving towards a more holistic view of the portfolio – some...

Thinking Outside the 60/40 Box: How Active and Dynamic Commodities Can Complement Bonds

Bonds helped investors to diversify equity between about 2000 and 2021, which more than covers the entire career of many allocators. Since 2022 bonds...

Allocator Interviews

- Advertisement -

Voices

Request for Proposal

- Advertisement -