Strategic Analysis of Kettera: January 2021 Heat Map
In the realm of Hedge Funds, January saw a mix of results across various strategies, with Kettera Strategies reporting strong returns for directional strategies, particularly in long corn and soybean positions, and some spread/relative value programs like KC vs Chicago wheat spreads and reverse cattle crush spreads.
However, it was Systematic Trend Programs that shone brightest, with their long positions in commodities, short North American fixed income, and minimal G10 currency exposure delivering the best returns. This success story was echoed in the CBOE Eurekahedge Relative Value Volatility Hedge Fund Index, the Eurekahedge AI Hedge Fund Index, and the Eurekahedge-Mizuho Multi-Strategy Index.
On the other hand, Most Equities Long/Short programs were net positive in January, but the dispersion of returns was significant, with some managers navigating chaotic markets profitably. The Eurekahedge Long Short Equities Hedge Fund Index, a blend of BarclayHedge Equity Market Neutral Index with Eurekahedge Equity Mkt Neutral Index, reflected this diversity.
In the realm of cryptocurrencies, January witnessed a remarkable milestone as traders experienced their best month ever. Bitcoin surpassed $40,000 for the first time, and Ethereum's relationship with Bitcoin yielded opportunities.
Volatility/Options Traders, on the other hand, have been on a steady slide since August last year, and the pop up in VIX in late January did not provide the boost needed.
The model-driven global macro camp faced challenges in January, with commodities offering little return and profits seemingly coming from fixed income. This is evident in the Hedge Fund Intelligence Global Macro Index, HFI Currency Index, Societe Generale Trend Index, SG CTA Index, and Societe General Short-term Traders Index.
It's important to note that the views expressed in this article are those of the author and not necessarily those of AlphaWeek or its publisher, The Sortino Group. Additionally, the "style baskets" mentioned are research tools created by Kettera for analysis and comparison purposes, not investible products or index products.
For the latest and specific performance details, I recommend visiting Kettera Strategies’ official website or reviewing their latest research publications, newsletters, or market reports.
Investors in the Hedge Fund sector, specifically Systematic Trend Programs, reported substantial returns in January, with their long positions in commodities, short North American fixed income, and minimal G10 currency exposure delivering impressive results. In the realm of finance and investing, this success was reflected in several Hedge Fund indices, such as the CBOE Eurekahedge Relative Value Volatility Hedge Fund Index, the Eurekahedge AI Hedge Fund Index, and the Eurekahedge-Mizuho Multi-Strategy Index.
