January proved to be one of the strongest months in years for trend-following CTAs, a favorable backdrop that also benefited Lynx Asset Management’s trend-following program. However, performance across the space, including at Lynx, could have been even stronger had the month ended a day earlier, before a sharp reversal in precious metals erased part of the gains accumulated earlier in the period.
The $6.4 billion systematic trend-following program managed by Lynx Asset Management delivered a standout performance in January, with its SEK share class gaining 7.4 percent. The fund was up 10.8 percent through Thursday, January 29, and would have recorded its second-best monthly return since inception in early 2000 had the trading month concluded one day earlier.
“Lynx was solidly profitable in January as gains were realized across all asset classes,” writes the team at Stockholm-based Lynx Asset Management in a monthly update to investors. Equities were the largest contributor, driven primarily by long positions in Asian equity indices. Continued optimism around technology companies and AI-driven growth pushed several global equity markets to new all-time highs during the month.
“Lynx was solidly profitable in January as gains were realized across all asset classes.”
Commodities also contributed meaningfully to performance, supported by a strong rally in precious metals amid heightened global political uncertainty. Long positions in gold and silver were among the strongest performers, although prices reversed sharply on the final trading day of the month, partially offsetting earlier gains. Smaller profits were generated in energy and agricultural markets.
Currency trading delivered mixed results as the U.S. dollar weakened sharply. Emerging market currencies contributed positively, led by the Mexican peso and the South African rand, while positions in the New Zealand dollar, Japanese yen, and Swiss franc detracted from returns. Fixed income added modestly to performance, with gains in Asia and Australia outweighing losses in Europe and North America.
Despite surrendering some gains at month-end, Lynx’s flagship trend-following program still posted a strong January, marking a notable rebound after a challenging environment for trend-following strategies over the past three years. The firm’s pure machine-learning-based Lynx Constellation Program also delivered a solid performance, gaining 3.6 percent during the month. This follows four consecutive years of positive returns, with the strategy ending 2025 as the top performer in the Nordic CTA Index, up 12.5 percent. While the Lynx Constellation Program retains many core characteristics of traditional trend-following strategies, its return profile can diverge meaningfully, particularly during market environments that have historically challenged trend followers.
