Kettera Strategies Analysis Map - April 2020
In the dynamic world of hedge funds, a shift in favour of systematic trend strategies and FX systematic programs has been observed, according to a report by Kettera Strategies in mid-2025. This trend indicates stronger performance from these systematic approaches over discretionary macro programs in global markets.
The recent past has been challenging for energy managers, particularly crude oil traders, who were negatively affected by an odd storage constriction that forced prices negative for the first time in history. However, in the realm of short-term programs, profits were made from gold and crude oil, with the latter rebounding somewhat.
Discretionary macro programs, on the other hand, generally benefitted from long fixed income and long equity directional positions, but their entry points and exposures varied. Despite these benefits, they showed relatively weaker returns compared to quantitative systematic strategies.
The Eurekahedge-Mizuho Multi-Strategy Index, Eurekahedge Long Short Equities Hedge Fund Index, and a blend of BarclayHedge Equity Market Neutral Index and Eurekahedge Equity Mkt Neutral Index are examples of such quantitative systematic strategies that outperformed their discretionary counterparts.
In the equities hedge fund strategies segment, while specific Kettera data is limited, broader industry insight suggests that these funds faced mixed performance, often challenged by market volatility and shifts between growth and value styles. In contrast, systematic trend strategies, including those focused on FX and global macro factors, generally showed positive returns and more consistent performance during this period.
The CBOE Eurekahedge Relative Value Volatility Hedge Fund Index, S&P GSCI Metals & Energy Index, and S&P GSCI Ag Commodities Index are among the indices that represent these systematic trend strategies.
Short-term "trend" models were profitable in all sectors except FX, while systematic trend strategies, on average, were positive but had setbacks in FX. This suggests that while FX might be a challenging sector, the systematic approach seems to be the preferred choice for many hedge fund managers.
On the other hand, currencies were a challenging sector for both discretionary and quant macro programs. Many quant macro programs suffered from relative value and volatility-trading positions, making it difficult to navigate the complex and volatile currency markets.
Event driven strategies, which had suffered the worst months since inception in March, charged back to life in April. This rebound could be attributed to the recovery of the global economy and the subsequent increase in mergers and acquisitions activities.
In summary, systematic trend strategies and FX systematic programs led performance gains, outperforming discretionary macro managers. Discretionary macro programs had relatively lower returns. Equities hedge funds faced mixed outcomes with no clear edge from the Kettera data but generally seen as more volatile than systematic trend strategies. This reflects a broader environment in global markets where systematic, data-driven strategies gained more traction and delivered steadier performance than discretionary approaches as of mid-2025 according to Kettera's heat maps and analysis.
This article is categorized under Hedge Funds Guest Articles and Hedge Funds - Managed Futures. All Rights Reserved for the publication, no part of it can be reproduced without written permission from the publisher.
[References] 1. The Eurekahedge-Mizuho Multi-Strategy Index 2. The Eurekahedge Long Short Equities Hedge Fund Index 3. BarclayHedge Equity Market Neutral Index 4. Eurekahedge Equity Mkt Neutral Index 5. CBOE Eurekahedge Relative Value Volatility Hedge Fund Index 6. S&P GSCI Metals & Energy Index 7. S&P GSCI Ag Commodities Index 8. BarclayHedge Currency Traders Index 9. BTOP FX Traders Index 10. Kettera Strategies
- In light of the analysis by Kettera Strategies, it seems that hedge funds are increasingly gravitating towards quantitative systematic strategies, particularly those focusing on finance and technology such as FX systematic programs, as these have shown stronger performance over discretionary macro programs.
- As the global market trends towards more systematic, data-driven strategies, investments in technology for finance and investing, such as advanced algorithmic trading systems, could potentially provide an edge for hedge fund managers seeking to capitalize on systematic trend strategies.
