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Buy Side

CTA Performance Improves Marginally in April The Societe Generale CTA Index posted a slightly positive return of 0.08% in April as market conditions improved but remained uncertain. Trend followers slightly outperformed other strategies, ending up 0.41%, and short-term strategies also delivered positive performance as the Short-Term Traders Index was up 0.20%. According to the SG Trend Indicator, the performance of trend followers was driven by the energy complex, bonds, currencies, and equity indices. Whilst the upward trend in energy markets continued and contributed 1.37% to the portfolio, the US bond markets also continued their downward trend. The US dollar strengthened against the existing downward trend causing losses in many currency markets.
Institutional Investors Look to Outsource Data Management More than half of institutional investors plan to partly or fully outsource their data management over the next three years, according to a new survey conducted by State Street Corporation. Amongst the firms surveyed, 52% conduct all of their data management functions in house, however, by 2021, this is expected to fall to 36%, according to the survey results, with 15% aiming to fully outsource this function to an external partner. “Explosion in data complexity has fundamentally changed the way asset owners and asset managers compete and operate,” says Subbiah Subramanian, global head of State Street Global Exchange’s data-as-a-service offering, DataGX.
Insch Kintore Launched as Jersey Domiciled Fund Jersey-based Insch Capital Management has launched its Insch Kintore strategy as a Jersey Private Fund. Since inception, the form says the strategy has earned a total net return (net of 1.5% management and 15% performance fees) of +49.21%, gaining 12.52% in 2015, 33.39% in 2016 and 21.16% in 2017. Rolling 12 month returns (26 observations) have averaged +20.44%, the firm adds. The strategy is entirely quantitative in nature and agnostic in terms of market direction and trades gold (as a currency) versus G7 currencies.
CTA Struggles Continue in March The flash estimate for the Barclay CTA Index, compiled by BarclayHedge, indicates a 0.34% loss in March. Year to date, the index is down 1.71%. “Concerns of a US/China trade war and a data hacking scandal at Facebook helped fuel a second month of declines in global equities and a flight to quality that drove fixed income yields lower,” says Sol Waksman, founder and president of BarclayHedge. The Financials and Metals Traders Index was down 0.71% in March, diversified traders lost 0.55%, and systematic traders gave up 0.50%. “Although aluminum and other base metals gave up ground on the month, the recovery in energy markets helped to offset some of those losses,” says Waksman.
AIMA Paper Provides Insight into the Hedge Fund World of the Future Some of the most senior men and women in the global hedge fund industry have put forward their collective vision of the hedge fund firm of the future in a new report published by the Alternative Investment Management Association. The paper, Perspectives: Industry Leaders on the Future of the Hedge Fund Industry, is sponsored by Aberdeen Standard Investments, the global investment company and is based on what AIMA terms “candid and wide-ranging conversations” with 25 of the leading figures in the industry.
Millennium Global Takes ACI’s ELAC for Global Code Adherence Currency manager Millennium Global has committed to the FX Global Code of Conduct and will ensure adherence to its principles in partnership with ACI Financial Market Association by adopting the association’s E-Learning, Attestation and Certification (ELAC) Portal, an accredited and continuous professional development solution. Millennium is the first major UK-based buy side asset management firm to sign up to ELAC, which was launched last year and has also been adopted by ANZ Bank among others to help demonstrate adherence to the Code.
Aston Capital Management Gets Swap Dealer Status Aston Capital Management is now a provisionally registered US Swap Dealer. The National Futures Association (NFA) notified the firm and updated its website to reflect this news on April 2. According to the NFA website: “A swap dealer (SD) is an entity that holds itself out as a dealer in swaps; makes a market in swaps; regularly enters into swaps with counterparties as an ordinary course of business for its own account; or engages in any activity causing the entity to be commonly known in the trade as a dealer or market maker in swaps.”
BarclayHedge CTA Index Lower in February The flash estimate for the Barclay CTA Index, compiled by BarclayHedge, indicates a 2.89% loss in February, meaning year-to-date, the Index is down 0.33%. The Diversified Traders Index fell 4.49%, Systematic Traders were down 3.67%, and Financials/Metals Traders lost 1.90%. On the positive side, Currency Traders gained 0.86%, Agricultural Traders were up 0.37%, and Discretionary Traders added 0.23% – after two months in 2018, the Discretionary Traders Index has gained 1.43%, Agricultural Traders are up 1.26%, and Financials/Metals Traders have a 0.49% positive return.
Trading Firm Launches Cryptocurrency Index Fund Hehmeyer Trading + Investments, a proprietary trading firm based in Chicago, has launched a new fund aimed at providing certain qualified investors access to the cryptocurrency market. The fund aims to track the performance of the proprietary Hehmeyer Cryptocurrency Index (HCI). Launching as a commodity pool for qualified eligible persons and accredited investors, the fund will be managed by Hehmeyer Capital Management, LLC, a commodity pool operator registered with the Commodity Futures Trading Commission (CFTC) and a member of the National Futures Association (NFA).
BarclayHedge Confirms Bad February for Hedge Funds Hedge Funds lost 1.53% in February according to the Barclay Hedge Fund Index compiled by BarclayHedge, although putting a good spin on it the firm says this compares to a 3.69% decline in the S&P 500 Total Return Index. Year to date, the Barclay Index remains up 0.52%, but lags the S&P which has gained 1.83%. Overall 13 of Barclay’s 17 hedge fund indices lost ground in February. The Global Macro Index was down 3.08%, Equity Long Bias lost 2.78%, Pacific Rim Equities were down 2.14%, and the Event Driven Index gave up 1.42%.