"Macro hedge funds surge in November as oil slide accelerates"
From our Nov. 6 post "
A Look At Trend Following Hedge Funds And the Algos That Love Them":
So why do commodity funds use trend-following?
Because trying to catch the turns is so dangerous to bonuses that the practice is best left to bloggers and other lunatics.
(sorry, still gloating over trading the recent S&P V-bottom almost
perfectly out in public, on the blog, in real time, backwards, in heels:
from warning in advance to calling the day of the bottom to
cheerleading the upmove to new highs-waddya mean "Memento Mori", where's
my laurel wreath, I'm going on parade)
From Hedgeweek:
Macro hedge funds and, more
specifically, CTA strategies employing quantitative, trend-following
strategies, posted strong gains in November as oil prices plummeted,
according to HFR.
The HFRI Macro Index gained +2.6 per cent in November, powered by a
gain of +4.6 per cent for the HFRI Macro: Systematic Diversified/CTA
Index; both the Macro and CTA Index gains were the strongest since
December 2010.
The HFRI Fund Weighted Composite Index gained +1.2 per
cent for the month, reversing a two-month decline for the broad-based
Index, bringing year-to-date (YTD) performance through November to +3.7
per cent. All four main strategy areas tracked by HFR posted gains for
the month.
Strong performance in Macro and CTA strategies was driven by
persistent and powerful trends across Commodity, Currency, Equity and
Fixed Income markets. Oil plunged more than 17 per cent in November,
losing over 10 per cent in the final trading day of the month, driven by
a combination of moderating global demand and, specifically, the
announcement that OPEC would maintain, rather than reduce, current
output targets; oil has declined nearly 33 per cent for 2014. In
addition to participating in the large move in oil, Macro hedge funds
also posted gains across Currency positions, as the US Dollar saw sharp
gains against the Japanese Yen, British Pound Sterling and oil-sensitive
currencies, including the Russian Rouble and Brazilian Real. The HFRI
Macro: Currency Index gained +1.3 per cent in November, while the HFRI
Macro: Active Trading Index gained +3.0 per cent and the Macro:
Multi-Strategy Index returned +3.0 per cent....MUCH MORE
