Commodity Trading Advisors (CTA) posted a 1.59% return in June, according to the Barclay CTA Index compiled by BarclayHedge, a division of Backstop Solutions.
This follows a difficult month in May for these funds, when the Barclay CTA Index was down 0.19%. Year-to-date, the index is now up 3.84%.
“Recession fears coupled with market anticipation of Fed loosening rallied prices for long-term bonds and short-term notes while gold prices rose to a six-year high,” says Sol Waksman, president of BarclayHedge. “Equity investors seemed to ignore recession concerns and focused on the benefits of a rate cut, propelling the S&P 500 7% higher on the month.”
Nearly all CTA fund sectors posted positive returns in June, the lone exception being the Agricultural Traders Index which was down 0.93%. All sectors remained in the black for the year-to-date through June.
“While most CTA sectors performed well in June, the Ag sector struggled with choppy grain markets and steep price declines for hogs and cattle,” adds Waksman.
Setting the pace for the month’s gainers was the Cryptocurrency Traders Index, up 17.6% in June. Meanwhile, the MPI Barclay Elite Systematic Traders Index was up 2.66% last month, the Diversified Traders Index posted a 2.05% return, the Financial/Metal Traders Index gained 1.9% for the month, and the Systematic Traders Index was up 1.97%.
The Currency Traders Index was up 0.59% in June, meaning that for the year, it has gained 1.34%.
In terms of year-to-date returns, the Cryptocurrency Traders Index continues to lead the way, gaining 84.83% for the year through the end of June. The MPI Barclay Elite Systematic Traders Index is up 5.64% for the year, the Diversified Traders Index is up 3.7%, the Systematic Traders Index is up 3.52% and the Financial/Metals Traders Index has gained 3.10% through June.
The Barclay BTOP50 Index, which tracks the performance of the largest CTAs that are still open for new investment, gained 5.30% in the first six months of the year.