Managed Futures Post Modest Gain In Sept.

Oct 17 2008 | 12:07pm ET

Investors spooked by their hedge fund portfolios may do well to diversify into managed futures. Commodity trading advisors posted a modest gain of 0.68% last month, bringing their average year-to-date return to 7.86%, according to the Barclay CTA Index.

“As the financial crisis continued to wreak havoc across global equity markets, trend-following CTAs were able to profit from short positions in stock index futures,” says BarclayHedge founder and president Sol Waksman.

The Barclay Systematic Traders Index gained 1.94% in September, while Diversified Traders were up 1.56% and the Financial/Metals rose by 1.07%.

“Most commodity prices have been in decline since mid-August,” says Waksman. “CTAs, on balance, are currently short these markets, and the price declines were another source of profits for the month. Global fixed income was a difficult area for many traders in September. The U.S. rescue plan resulted in large counter-trend moves in the interest rate markets.”

All eight of the managed futures indices monitored by BarclayHedge are showing positive performance for the year. The Diversified Traders Index is up 14.15%, Agricultural Traders have gained 10.73%, Systematic Traders 9.21% and Discretionary Traders 9.05%.

The Barclay BTOP50 Index, which monitors performance of the largest traders, rose by 0.28% in September and is now up 6.45% over the first nine months of the year.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...