Managed futures have variously been defined as an eclectic mix of investment strategies, a hedge fund category, and a separate asset class. People outside of the industry tend to see them as a risky investment. Regardless of perspective, managed futures exhibit unique properties that make these strategies an attractive investment vehicle.
All SG CTA indices posted positive returns in the last month of 2016, at the end of an otherwise difficult quarter. The flagship SG CTA Index closed the year slightly negative -2.86% and SG Trend Index -6.19%, the first negative year's performance since 2012.
All hedge fund indices outperformed the S&P 500 last week, with CTAs at the top with a return of 1.7%, according to Bank of America Merrill Lynch’s Hedge Fund Monitor. The diversified hedge fund index was up 0.4% last week, while the S&P 500 was down 1.5% on a price returns basis.