Is long cold spell over for CTAs?

Managed futures show strong returns

Newedge reported today that managed futures investments staged a recovery from its three-year slump in the first half of 2014. The Newedge report, “CTA Performance in H1 2014,”  indicated performance picked up significantly since March. The Newedge Trend Index was up 7.27% since March.

The report stated, “The first 12 weeks of the year were challenging, particularly for trend following strategies, with bonds, currencies and equities contributing the most to negative performance,” adding Non-trend following strategies generally outperformed trend following strategies during the first half of the year. For H1 2014,  the overall Newedge CTA index was + 1.09% with the Newedge Short Term Traders index turning in the best performance at +1.98%, while the Newedge index of trend following managers was -0.78%.    

The report summary noted that German and Japanese bonds had the strongest trends with American and European equities showing moderate trends.

 See complete report here 

About the Author

Editor-in-Chief of Modern Trader, Daniel Collins is a 25-year veteran of the futures industry having worked on the trading floors of both the Chicago Board