Key Takeaways
- • CTA/managed futures hedge funds gained 1.89% in August 2019, rebounding strongly while the broader hedge fund universe declined, according to Eurekahedge data.
- • Overall hedge fund managers ended August 2019 down 0.35% on an equal-weighted basis and down 0.54% on an asset-weighted basis.
- • Managers attributed CTA gains to long exposure to metals and fixed income and short exposure to energy.
- • CTA/managed futures AUM grew by USD 18.6 billion year-to-date in 2019, reversing the USD 45.5 billion decline recorded over 2018.
- • Risk-off sentiment persisted through August as the US labelled China a currency manipulator, intensifying trade tensions.
Summary
Hedge fund managers ended August 2019 in negative territory, with the industry down 0.35% on an equal-weighted basis and 0.54% on an asset-weighted basis, according to data released by Eurekahedge. The month was defined by risk-off sentiment, which persisted throughout August as the United States labelled China a currency manipulator, escalating tensions between the two economies.
Against this backdrop, CTA/managed futures hedge funds were a bright spot, rising 1.89% in August. Managers cited long exposure to metals and fixed income, along with short exposure to the energy sector, as the main performance drivers. The result marked a rebound for the strategy, which benefited from trend-following positioning across asset classes during a period of heightened macroeconomic volatility.
The mandate's asset base has also recovered strongly. Assets under management in CTA/managed futures funds have grown by USD 18.6 billion year-to-date, a sharp reversal from the USD 45.5 billion outflow-driven decline recorded over 2018. The swing underscores renewed investor interest in the strategy after a difficult prior year.
Supplemental coverage from the publisher's domain noted that the Global Macro and Managed Futures indices each gained 2.4% in a separate reporting period, and that trend-following strategies are generally viewed as positively skewed relative to the broader hedge fund universe. These observations are contextual and do not alter the August 2019 Eurekahedge figures reported above.
Against this backdrop, CTA/managed futures hedge funds were a bright spot, rising 1.89% in August. Managers cited long exposure to metals and fixed income, along with short exposure to the energy sector, as the main performance drivers. The result marked a rebound for the strategy, which benefited from trend-following positioning across asset classes during a period of heightened macroeconomic volatility.
The mandate's asset base has also recovered strongly. Assets under management in CTA/managed futures funds have grown by USD 18.6 billion year-to-date, a sharp reversal from the USD 45.5 billion outflow-driven decline recorded over 2018. The swing underscores renewed investor interest in the strategy after a difficult prior year.
Supplemental coverage from the publisher's domain noted that the Global Macro and Managed Futures indices each gained 2.4% in a separate reporting period, and that trend-following strategies are generally viewed as positively skewed relative to the broader hedge fund universe. These observations are contextual and do not alter the August 2019 Eurekahedge figures reported above.
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