Kettera Strategies' Heating Map - March 2021 Report
In the dynamic world of finance, March 2021 presented an interesting mix of challenges and opportunities for various hedge fund strategies. This article will delve into the performance of Managed Futures funds, a category that includes Kettera Strategies' quant macro group, Systematic CTAs, and FX specialists, among others.
Kettera Strategies, a firm known for its "style baskets" - research tools not designed for investment or indexing - faced a tough month in fixed income, particularly in the tech sector and the cooling SPAC market. However, gains in equities and commodities were common themes for the firm in March.
Event-driven specialists, a crucial part of the Managed Futures landscape, were also affected by the slowdown in tech sector deals and the SPAC market. Nevertheless, most FX specialists tracked by Kettera Strategies performed well, with a long USD stance being particularly profitable. Unfortunately, specific details about the most profitable currency positions for FX specialists in March 2021, as reported by Kettera Strategies, could not be found in the available search results.
Systematic CTAs faced challenges in fixed income and softs commodities but managed to stay profitable, largely due to long positions in North American and European equity indexes and short crude oil.
The Managed Futures category also includes funds like the BarclayHedge Currency Traders Index and BTOP FX Traders Index, which focus specifically on currencies. Trend followers that were nimble enough to catch the unanticipated strength in the USD had a strong month in currencies.
Commodities strategies, too, faced difficulties in navigating the mixed messages of continued lockdowns and trillion-dollar infrastructure promises. The Barclay Crypto Traders Index, on the other hand, offers a glimpse into the burgeoning world of cryptocurrencies.
For benchmarking purposes, Kettera Strategies looks to indices such as the IndexIQ Hedge Global Macro Beta Index, Societe Generale Trend Index, SG CTA Index, and Societe Generale Short-term Traders Index. The EurekaHedge AI Hedge Fund Index, for illustrative purposes, showcases the potential of artificial intelligence in hedge fund management.
The S&P GSCI Metals & Energy Index and S&P GSCI Ag Commodities Index provide valuable insights into the performance of specific commodity sectors.
It's essential to remember that the views expressed in this article are the author's and not necessarily those of AlphaWeek or its publisher, The Sortino Group.
In conclusion, March 2021 was a month of mixed fortunes for Managed Futures funds, with challenges in certain sectors but overall profitability driven by successful positions in equities and currencies. As always, the ever-evolving market conditions necessitate a nimble and adaptive approach to investment strategies.
Investing in technology-focused sectors proved difficult for Kettera Strategies in March 2021, as the firm faced a tough month in fixed income, particularly in the tech sector and the cooling SPAC market.
Despite the challenges in certain sectors, most FX specialists tracked by Kettera Strategies performed well in March, with a long USD stance being particularly profitable.
