No turkeys for John W. Henry & Co. this Thanksgiving: The firm piggybacked on its September performance and turned in another profitable month in October, fueled by volatility in the credit space.
Four out of JWH’s five programs were positive last month led by International Foreign Exchange program, which was up 10.65% in October (but still down 19.67% year-to-date), and JWH Global Analytics, which gained 7.75% in October and is up 7.33% year-to-date.
“The resulting increase in market volatility benefited the firm’s disciplined, long-term systematic trading approach as the U.S. dollar continued its fall,” according to chief operating officer Kenneth Webster, in his monthly investor letter. “Energy and metals markets surged as the Federal Reserve Board lowered its benchmark rate by 25 basis points to 4.5% in the hopes of keeping the U.S. economy from stalling.”
However, the firm’s programs losses in the fixed income market “as its programs systematically exited positions in European and U.S. fixed income markets as yields fell. Trend reversals occurred as investors sought the relative safety of government debt after U.S. banks reported larger-than-expected third quarter losses linked to securities backed by subprime mortgages.”
The firm’s assets under management dropped to $404 million.