BarclayHedge
The Barclay CTA Index reflects a positive month for funds, gaining 0.85% in April 2019. Strong performance in recent months has allowed the Barclay CTA Index to gain 2.28% year-to-date. April also saw gains for nine out of 10 of the BarclayHedge’s CTA indices, bringing all ten into positive territory for 2019. “Four consecutive months […]
Data from BarclayHedge confirms previous Profit & Loss reporting that CTAs saw overall positive results in February, with the BarclayHedge CTA Index showing a 0.32% return last month.Five of eight of the CTA sectors tracked in the Barclay CTA indices were in positive territory for February, though the agriculture and currency sectors were a drag on performance.“CTA funds got in step with equity markets in February, and those able to sit out a week-long energy reversal at the beginning of the month were rewarded by month-end,” says Sol Waksman, president of BarclayHedge.
Managed futures stumbled out of the gate to start 2019, as the Barclay CTA Index, compiled by BarclayHedge, a division of Backstop Solutions, was down 0.43% for January .All but two of the BarclayHedge’s managed futures indices were in negative territory for January, as CTA funds were generally unable to build on their modest gains of the final two months of 2018.“After precipitous price declines in December, most CTAs found themselves on the wrong side of the street in January as energy and equity prices unexpectedly rose from the ashes of the previous month and rebounded sharply,” says Sol Waksman, president of BarclayHedge.
Hedge funds dipped 2.61% in December, according to the Barclay Hedge Fund Index compiled by BarclayHedge, a division of Backstop Solutions, meaning it was down 5.08% for the year.
The loss was less significant, however, than that of the S&P 500 Total Return Index, which dropped 9.03% in December, to end down 4.38% for 2018.
While lowering its projections for future interest rate hikes, the US Federal Reserve raised its benchmark rate a quarter-point in December. That, coupled with extreme volatility in equity markets was a major factor in December’s hedge fund downturn, BarclayHedge says.
The flash estimate for the Barclay CTA Index, compiled by BarclayHedge indicates a small profit of 0.01% in November. Year to date, the Index is down 3.00%.
“Although the November return for the Index was right at zero percent, the dispersion of returns of the underlying funds was quite large, ranging from a high of plus 30.74 percent to a low of minus 40.40 percent,” says Sol Waksman, founder and president of BarclayHedge.
Eight of the nine Barclay Managed Futures indices had a negative return in November. Cryptocurrency Traders fell 22.64%, MPI Barclay Elite Systematic Traders lost 1.64%, Agricultural Traders were down 0.50%, and Discretionary Traders lost 0.25%.
Hedge Funds slid 0.28% in November according to the Barclay Hedge Fund Index compiled by BarclayHedge, which is now owned by Backstop Solutions, versus a 2.04% increase in the S&P 500 Total Return Index. Year to date, the Barclay Hedge Fund Index is down 2.42%, while the S&P has gained 5.11%.
“Global equity markets had mixed returns in November as European markets fell while the US and Asia rose,” says Sol Waksman, founder and president of BarclayHedge. “An 18.4 percent drop in the price of Apple along with declines in Facebook and Netflix – stocks that are widely held by hedge funds – created additional losses for technology funds.”
Backstop Solutions Group, a cloud-based CRM provider for institutional and alternative investors, is set to acquire BarclayHedge, which produces alternative investment data and indices. In a release issued today, BackStop says that adding BarclayHedge to its portfolio of acquired companies represents a significant step in its long-term vision of a productivity suite for institutional and alternative investors. “With proprietary access to the 2,200 alternative investment managers and 6,900 funds tracked by BarclayHedge, Backstop will be able to offer institutional clients a unique combination of technology, tools, services and data to help optimise their research management and due diligence workflows. Alternative asset managers who currently report to BarclayHedge will also benefit by having their exposure to asset owners potentially triple when the client communities of both Backstop and BarclayHedge are combined,” it says in the release.
The flash estimate for the Barclay CTA Index, compiled by BarclayHedge, indicates a 1.29% loss in October. Year to date, the Index is down 2.87%.
Six of the firm’s Managed Futures indices lost ground in October, while three had gains. Cryptocurrency Traders gave up 3.62% in October, MPI Barclay Elite Systematic Traders lost 3.15%, Diversified Traders were down 2.32%, the Systematic Traders Index lost 1.93% and Financial/Metals Traders dropped 0.43%. The Currency Traders Index had the largest gain in October.
Hedge Funds gave up 3.06% in October according to the Barclay Hedge Fund Index compiled by BarclayHedge, versus a 6.84% decrease in the S&P 500 Total Return Index. Year to date, the Barclay Hedge Fund Index is down 1.90%, while the S&P has gained 3.01%.
Overall, 16 of Barclay’s 17 hedge fund indices had losses in October, while only one index had a gain.
The Barclay Fund of Funds Index gave up 2.69% in October, and has moved into negative territory with a 2.34% loss for the year.
The flash estimate for the Barclay CTA Index, compiled by BarclayHedge, indicates a 0.19% loss in September. However, currency trading remains the best performing sector this year.
“The US economy continues to strengthen in spite of pervasive trade war fears and continued Fed monetary tightening, while other countries have chosen to keep their rates low,” says Sol Waksman, founder and president of BarclayHedge.
He adds: “These contradictory monetary policies have created unpredictable crosscurrents and trend changes in futures prices.”
Eight of Barclay’s managed futures indices had losses in September, while only one had a gain.
