Kettera Strategies' Heat Map for June 2021
In the world of hedge funds, June saw a mixed bag of results, with some strategies performing opposite to their May outcomes. This is according to various reports, including those from the Eurekahedge Long Short Equities Hedge Fund Index and the CBOE Eurekahedge Relative Value Volatility Hedge Fund Index.
Currency specialists, however, managed to secure positive performances in June. Systematic strategies outperformed their discretionary counterparts, a trend that was also observed in the Barclay Crypto Traders Index.
Unfortunately, the search results did not yield any information about the performance trends for systematic trend programs, industrial commodities, currency specialists, and discretionary global macro managers for June, as reported by Kettera Strategies. For detailed performance trends of these hedge fund strategies, it is recommended to refer to Kettera Strategies’ own publications or industry-specific newsletters.
The Eurekahedge-Mizuho Multi-Strategy Index and a blend of BarclayHedge Equity Market Neutral Index and EurekaHedge Equity Mkt Neutral Index were also mentioned in these reports.
In the commodities sector, metals markets faced challenges, but most fundamental relative value and spread specialists in the sector managed to stay positive. Commodities saw gains in energy markets, notably natural gas, but losses in precious metals and grains markets.
Industrial commodities specialists, including Nat Gas traders, had positive performances in June. Crude strategies also had positive performances, reaching their highest levels since the pandemic began.
The overall reversal of the "reflation trade" interfered with several correlated trends and led to a general deleveraging of longer-term trend portfolios. This was particularly evident in systematic trend programs, which experienced setbacks primarily in fixed income and currency markets.
In quant macro, strategies with positive months tended to focus on or include relative value (RV) and spread models in the commodities markets. The hawkish U.S. Fed announcement mid-month led to robust price movements in the short and medium term, benefiting quickly adapting strategies that ignore market fundamentals.
Lastly, the BarclayHedge Currency Traders Index, BTOP FX Traders Index, Barclay Ag Traders Index, BarclayHedge Discretionary Traders Index, and NilssonHedge Commodities CTA Index were also mentioned in these reports. The EurekaHedge AI Hedge Fund Index was also included, reflecting the growing interest in artificial intelligence in the hedge fund industry.
It is essential to note that the views expressed in this article are not necessarily those of AlphaWeek or its publisher, The Sortino Group. This article is a guest article on Hedge Funds and Managed Futures, published by The Sortino Group.
Technology played a significant role in June's investing landscape, as data-and-cloud-computing solutions aided currency specialists in securing positive performances. diversified trend programs, such as those in commodities and currencies, could potentially benefit from advancements in technology for improved data analysis and strategic decision-making.
