The managed futures industry closed the year with a second consecutive profitable month and rose 0.20% in December, according to the Barclay CTA Index compiled by BarclayHedge, a division of Backstop Solutions. For the full year, CTAs returned 5.15%.
“A fourth month of rising equity prices and government bond yields provided a tailwind for momentum traders in December, but price reversals in agriculture and some currency markets created cross winds that reduced trading profits,” said Sol Waksman, president of BarclayHedge.
Only three CTA sectors posted positive results in December. The Discretionary Traders Index led the way with a 0.48% return, followed by the Diversified Traders Index, up 0.40%, and the Systematic Traders Index, gaining 0.11%.
Sectors in the red in December included the Cryptocurrency Traders Index, down 4.55%, and the MPI Barclay Elite Systematic Traders Index, which lost 0.51%. Also losing ground in December were the Agricultural Traders Index, down 0.27%, the Currency Traders Index dropped 0.25%, and the Financial & Metal Traders Index shed 0.05%.
On an annual basis, all managed futures sectors were in the black for 2019. The Cryptocurrency Traders Index set the pace with a 31.62% annual return, followed by the MPI Barclay Elite Systematic Traders Index, up 8.14%, the Systematic Traders Index, with a 4.88% gain, and the Financial & Metal Traders Index, with a 4.62% return.
The Barclay BTOP50 Index, which tracks the performance of the largest CTAs that are still open for new investment, was down 0.32% in December but gained 6.73% for the year.
For a complete table of Barclay CTA Index results as well as historical data, click here.
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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