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Nordic CTAs show dispersed returns in Q3

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This year’s Alternative Fixed Income report from HedgeNordic explores how institutional investors and asset managers are navigating this new reality, balancing yield and resilience amid shifting credit cycles, structural change, and evolving sources of return.

Stockholm (HedgeNordic) – As financial markets turned increasingly volatile in the third quarter, CTAs showed resilience. The NHX CTA index gained 1.5 percent during the period, slightly underperforming global industry benchmarks. Year to date, Nordic CTAs as represented by NHX, are up 0.3 percent.

Performance dispersion remained high as short term strategies continued to struggle while fundamental strategies had a solid month.

Among the large names, Lynx lost 1 percent during the quarter, with steep losses seen in August. SEB Asset Selection, on the other hand, gained 1.8 percent. Among the strongest performers were IPM Systematic Currency and Estlander Alpha Trend with gains of 7.4 percent and 6.7 percent respectively.

On the year, MG Commodity is by far the strongest performer, especially when adjusting for risk (see table 2 where all managers are adjusted to the average volatility level of Nordic CTAs).

table1_2
table2_2

Bild: (c) Minerva-Studio—shutterstock.com

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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

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