FAIRFIELD, IOWA NOVEMBER 13, 2019
The managed futures industry suffered a second straight down month in October declining 0.74%, according to the Barclay CTA Index compiled by BarclayHedge, a division of Backstop Solutions. Sixty percent of CTA funds had losses on the month, but year-to-date, CTAs have posted a 4.80% gain through the end of October.
“Signs of a possible ‘phase one’ US/China trade truce coupled with the hope that a no-deal Brexit may yet be avoided was enough to convince investors that it may be time to reduce their defensive positions and get on offense,” said Sol Waksman, president of BarclayHedge. “Interest rates rose, the US dollar weakened against the British pound and the euro, and the S&P 500 began its rise to new all-time highs in the second week of October ending a 3-week decline from mid-September.”
CTA sectors were evenly split between gainers and losers in October, and though the industry was in the red for the month, four sectors posted gains. The Cryptocurrency Traders Index led the way with a 2.73% return for the month, followed by the Discretionary Traders Index with a gain of 0.22%, the Agricultural Traders Index rose 0.16%, and the Currency Traders Index returned 0.09%.
Sectors in the red in October included the MPI Barclay Elite Systematic Traders Index, down 2.23%, the Diversified Traders Index dropped 1.46%, the Systematic Traders Index lost 1.21%, and the Financial & Metal Traders Index shed 0.70%.
For the year-to-date, all CTA sectors remained in the black through October. The Cryptocurrency Traders Index set the pace with a 51.62% return year-to-date, followed by the MPI Barclay Elite Systematic Traders Index, gaining 7.54%, the Financial & Metal Traders Index, up 4.34%, the Systematic Traders Index has advanced 4.30%, and the Diversified Traders Index is up 3.87% on the year.
The Barclay BTOP50 Index, which tracks the performance of the largest CTAs that are still open for new investment, lost 2.57% in October but has gained 6.53% year-to-date.
For a complete table of Barclay CTA Index results as well as historical data, click here.
About Backstop Solutions
Backstop’s mission is to help the institutional investment industry use time to its fullest potential. We develop technology to simplify and streamline otherwise time-consuming tasks and processes, enabling our clients to quickly and easily access, share and manage the knowledge that’s critical to their day-to-day business success. Backstop provides its industry-leading cloud-based productivity suite to investment consultants, pensions, funds of funds, family offices, endowments, foundations, private equity, hedge funds and real estate investment firms.
BarclayHedge, a division of Backstop, currently maintains data on more than 7,100 hedge funds, funds of funds, and CTAs. The BarclayHedge Indices are utilized by institutional investors, brokerage firms and private banks worldwide as performance benchmarks for the hedge fund and managed futures industries.
BarclayHedge, a division of Backstop Solutions Group