Tue, Mar 31, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Barclay CTA Index gains 0.48% in December; Managed Futures down 1.64% in 2012

Tuesday, January 15, 2013
Opalesque Industry Update: Managed futures gained 0.48% in December according to the Barclay CTA Index compiled by BarclayHedge. The Index ended 2012 with a loss of 1.64%.

“The main drivers of returns last month were the uptrend in global equities and the continued weakening of the Japanese yen,” says Sol Waksman, founder and president of BarclayHedge.

Seven of Barclay’s eight CTA indices had a positive return in December. The Diversified Traders Index was up 0.58%, Systematic Traders gained 0.58%, Financial & Metals Traders added 0.57%, and Currency Traders gained 0.35%.

The only losing strategy in December was the Agricultural Traders Index, which was down 0.57% for the month.

“Wheat prices dropped 10.3 percent and corn lost 7.4 percent,” says Waksman. “It was costly if you were positioned on the wrong side of either of these moves."

The Barclay BTOP50 Index, which measures performance of the largest CTAs, gained 0.45% in December, but lost 1.84% in 2012.

The Agricultural Traders Index was up 9.82% at the end of August, but after four straight months of losses, ended the year with a return of 5.40%. CTAs trading Agricultural markets were still the most successful managers in 2012.

Currency Traders had a 1.59% return in 2012, and Discretionary Traders were up 1.39% at year end.

On the losing side of the ledger, the Diversified Traders Index gave up 3.94% in 2012, Systematic Traders lost 3.11%, and the Financial & Metals Traders Index was down 2.74%.

For the first time in 33 years, the Barclay CTA Index recorded losses for two years in a row, down 3.09% in 2011, followed by losses of 1.64% in 2012.

“Over the past two years, there have been primarily only two trades to make; either risk-on or risk-off,” says Waksman.

“The main market sectors for CTAs – equities, interest rates, currencies, and commodities – would see prices change direction based on unpredictable government actions and announcements. It’s been a difficult environment for traders.”

BarclayHedge

Press Release

BM

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. M&A - Hedge funds no longer attractive targets for banks, reinsurers, Blackstone buys stake in Christopher Pucillo’s Solus event-driven hedge fund[more]

    Hedge funds no longer attractive targets for banks, reinsurers From Institutionalinvestor.com: Swiss RE, the world’s second-largest reinsurer, is looking to sell its 15 percent stake in Jersey, Channel Islands–based hedge fund firm Brevan Howard Asset Management. Morgan Stanley reported

  4. Opalesque Radio: Threadneedle expects continuing equity volatility this year[more]

    Benedicte Gravrand, Opalesque Geneva: Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial’s founder and CEO Jeff Kilburg told CNBC on Monday. And this volatility is going

  5. Hedge funds show strong performance of 2.52% so far in 2015[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry got off to a strong start in 2015 "completely unmindful" of the poor performance last year, according to data provider Preqin. According to Preqin, following a year which saw the average he

 

banner