Tag: BarclayHedge

BarclayHedge

CTAs Register Small Gains in July

The flash estimate for the Barclay CTA Index, compiled by BarclayHedge, indicates a 0.21% gain in July. Year-to-date, the index has lost 1.98%.

“Although managed futures were able to register a small gain in July with 57% of the underlying index constituents reporting profits, the dispersion of monthly returns was quite high, ranging from a 41% gain down to a 15% loss,” says Sol Waksman, founder and president of BarclayHedge.

Four of Barclay’s managed futures indices had gains in July, while six had losses. The Cryptocurrency Traders Index was up 5.28%, the Agricultural Traders Index gained 1.04%, and Discretionary Traders Index was up 0.67%.

Hedge Funds Shake Off Tech Decline: BarclayHedge

Hedge Funds gained 0.54% in July according to the Barclay Hedge Fund Index compiled by BarclayHedge, versus a 3.72% increase in the S&P 500 Total Return Index. Year to date, the Barclay Index is up 1.04%, while the S&P has gained 6.47%.
“In spite of July’s rise in global equities, hedge fund performance was mixed,” says Sol Waksman, founder and president of BarclayHedge. “Technology funds were negatively impacted by Facebook’s record 20 percent decline triggered by the announcement of weaker-than-expected revenue growth.”

Survey Highlights Hedge Fund AI Usage

Artificial intelligence (AI) and machine learning (ML) are reshaping the alternative investments landscape, but professional financial managers still make the most pivotal decisions, according to a new survey from BarclayHedge.

In a sample of 55 hedge funds that responded to the survey, 56% said they use AI/ML to inform investment decisions, with most of the firms that use these tools saying that they do so in order to generate trading ideas and optimise portfolios.

Well over half of the respondents, 58%, have used AI for three or more years, while 37% have used the technology for five-plus years.

Hedge fund managers were among the earliest adopters of advanced algorithms and artificial intelligence techniques, which helps explain why a plurality of survey respondents said they have been using AI/ML for more than five years.

CTA Index Down for June; But Currency Managers Show Gains

The flash estimate for the Barclay CTA Index, compiled by BarclayHedge, indicates a 0.05% loss in June. Year to date, the index is down 2.00%.

“Trade war concerns sparked by economic sabre rattling shook grain markets, while US pressure on its allies to boycott Iranian oil rallied energy prices to new highs on the year,” says Sol Waksman, founder and president of BarclayHedge.

Agricultural traders were down 0.59% in June, the Discretionary Traders Index lost 0.59%, and Diversified Traders gave up 0.21%.

Investors Withdraw Money from Hedge Funds In April

With what appears to be immaculate timing, hedge fund investors turned cautious in April 2018 and redeemed $1.9 billion in assets from the industry, just in time for it to produce positive returns in both April and May.
According to the Barclay Fund Flow Indicator, even as the equities markets rebounded and volatility began to calm down, investors withdrew 0.1% of industry assets, which the firm says levelled off at an all-time high of $3 trillion. In April the BarclayHedge Hedge Fund Index gained 0.49% and in May it was up 0.9%, having ended the first quarter -0.7% year-to-date.

CTAs Down in May, Despite Currency Gains

The flash estimate for the Barclay CTA Index, compiled by BarclayHedge, indicates a 0.24% loss in May, although currency traders gained 0.88% last month. Year-to-date, the Barclay CTA Index is down 1.76%.

“Large systematic traders were the hardest hit by trend reversals in fixed income, energy, sugar and cocoa prices,” says Sol Waksman, founder and president of BarclayHedge.

The new MPI Barclay Elite Systematic Traders Index (MBEST) lost 1.85% in May, diversified traders were down 0.64%, financials and metals traders lost 0.44%, and systematic traders gave up 0.44%.

CTAs Look Towards Crypto Trading

Thus far, despite the hype and excitement around cryptocurrencies, most CTAs haven’t exactly been in a rush to start trading these assets. However, as Galen Stops reports, this might be about to change.

As Cboe and CME both prepared to launch bitcoin futures contracts in December 2017, the price of a single bitcoin roared upwards to peak at over $19,000.

For retail investors, the attraction of this particular cryptocurrency was that the price had been going up all year, having traded at around $985 per bitcoin in January of last year. For professional traders, the attraction of bitcoin was that it was an asset that was actually moving, it was uncorrelated to other assets and therefore offered diversification benefits and, on top of all this, was almost exclusively being traded by retail punters.

CTAs Register Narrow Gains in April

The flash estimate for the Barclay CTA Index, compiled by BarclayHedge, indicates a 0.23% gain in April. Year-to-date, the index is down 1.42%.

“New US sanctions targeting Russian oligarchs pushed aluminum prices to six-year highs, while crude oil prices rose to their highest level in four years after threats of US withdrawal from the Iran nuclear deal stoked fears of increasing Mideast instability,” says Sol Waksman, founder and president of BarclayHedge.

The Currency Traders Index gained 0.71% in April, the Discretionary Traders Index was up 0.63%, the Diversified Traders Index added 0.24%, and the Systematic Traders Index rose 0.07%.

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.

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.