So here we are trend followers. A fairly balmy January with no sign of any change in the endless ascent of the S&P500 *spoiler alert*……and yet somewhere far far away a little sneeze (literally) this month is about to bring the house of cards down next month. Who woulda’ thunk it….a sneeze………but that is what…
CTA Fund Performance Report – 31 August 2019 – Up, Up and Away in my Beautiful, my Beautiful Balloon
We finally have removed that nasty persistent drawdown that has been plaguing us since early 2015….and it’s time to celebrate. On writing this momentous report with the benefit of hindsight there is a small kick in the guts coming in September….but that is just how the cookie crumbles. It shouldn’t interfere with our right to celebrate….just a bit.
As an ongoing feature of this website, we decided that we would go the extra mile and track the performance of a large number of long term established Commodity Trading Advisors (CTA’s) reported by the NilssonHedge crowd-sourced CTA database.
June 2019 saw a continuation of positive performance for the CTA’s with the CTA Composite Index (60) now showing a 4.58% positive return YTD and the TF Global Index (37) reflecting a 3.94% YTD return. Will we see the protracted drawdown that has been experienced by these indexes since January 2015 vaporize, or is this just a short term teaser before the overall markets flip back into their steady mean reverting rhythm?
May 2019 saw another positive performance result for the Commodity Trading Advisors as a group. This is the fourth consecutive month in a row for positive returns in the CTA Composite Index (12)….however despite the solid performance of the CTA’s as a whole, we saw a slight negative result for the Trend Following Global CTA’s.
While offering nothing to crow about, a flat return from the systematic trend following funds for the month is certainly a welcome result considering equities represented by the S&P500 TR Index (Total Return) plummeted 7.7% in November which added to the pain of Septembers plunge bringing the S&P500 TR Index to a 12.2% drawdown from it’s equity high in August 2018.