July Returns Robust In Tactical Asset Allocation Strategies
Sneak peek at July hedge fund and managed futures returns from Kettera Hydra Platform Investor Letter.
Kettera Hydra platform gives qualified investors the ability to access top-tier fully vetted macro, managed futures, FX and hedge fund managers at lower investment minimums and the same fee structure as directly managed accounts.
The platform separates the "wheat from the chaff" and only lists best-in-class managers. Kettera conducts rigorous due diligence on each manager before a manager is approved on the platform.
Breakdown of Hedge Fund Returns in July
Sixty-five percent of the Kettera style hedge fund benchmarks were positive in July.
The best performing categories were: Systematic Trend Following up 2.45%, Currency Traders Funds up 1.15%, and Long Short Equities up 0.89%.
The categories that were down: Global Macro Discretionary (-1.86%), Global Macro Quant/Model-Based (-0.39%), Multi-Strategy (-0.37%), Equity Market Neutral (-0.36%) and Commodity Specialists Agriculture (-1.47%) programs.
Perhaps this signals that liquid diversifying alternatives have not just regained their footing but are coming back to their role of providing diversifying alpha to investor portfolios.
*Past performance is not indicative of future results. Not Investment Advice.
Kettera Strategies Hedge Fund Platform July Letter
#1 Most equities-based strategies appeared to end the month profitably, despite retracement in most stock markets during the month. L/S equity and event driven strategies were generally positive, although not dramatically so, while a few of the market neutral programs we follow faced some challenges.
#2 Trend following strategies continued their strong performance. The Soc Gen Trend Index has reached the 15% YTD level, with some managers on Hydra exceeding 20%+ YTD. Currency and long fixed income trades drove the bulk of the performance in July.
#3 Short-term and higher-frequency programs fared well. Profits were not as “across the board” as June, but most programs were still positive. One of Hydra’s longstanding short-term systematic programs posted its best month in years – thanks to capturing short-term move
#4 Global macro programs varied by style (model-driven vs discretionary) and sector focus. On the whole, discretionary programs appeared to face more challenges in July. Many that we follow sustained setbacks in non-US equities and currencies. Quant and model-driven strategies, on the other hand, seemed to capitalize on fixed income moves.
#5 Currency specialists staged a comeback. This category was plagued for years with low volatility and choppy, sideways markets. But 2019 has been generally positive, with July being a banner month – especially for those trading economic fundamentals.