Key Takeaways
- • The Barclay CTA Index, tracking over 400 commodity trading advisors and managed futures hedge funds, gained 0.37% in July 2021 and has advanced 4.91% year-to-date through seven months.
- • Cryptocurrency-based strategies drove July performance, with the Cryptocurrency Traders Index posting a 5.16% monthly gain and achieving an 84% year-to-date return, outpacing all other CTA sub-sectors.
- • All trend-following sub-sectors ended July in positive territory, demonstrating resilience amid Delta variant concerns and global economic uncertainty, according to BarclayHedge research head Ben Crawford.
- • The MPI Barclays Elite Systematic Traders Index, tracking the 20 largest systematic traders, returned 0.74% in July and 8.51% year-to-date, while the Diversified Traders Index led yearly performance at over 7% for 2021.
- • Agricultural Traders and Systematic Traders sub-sectors also contributed solid returns, with agricultural strategies up 4.99% year-to-date and systematic traders advancing 4.56% through July.
Summary
Managed futures hedge funds closed July in positive territory, propelled primarily by sharp gains in cryptocurrency-focused strategies, according to performance data released by BarclayHedge. The Barclay CTA Index, a leading industry benchmark that tracks the performance of more than 400 commodity trading advisors and managed futures hedge funds, added 0.37% in July and has now accumulated a 4.91% gain through the first seven months of 2021.
Cryptocurrency traders dominated July performance, with digital asset strategies significantly outpacing all other CTA sub-sectors. The Cryptocurrency Traders Index achieved a 5.16% monthly return, commanding a substantial lead over competing strategies. This strength has translated into an exceptional year-to-date performance, with the cryptocurrency benchmark reaching 84% returns since January 2021, substantially exceeding gains in every other managed futures sub-sector tracked by BarclayHedge.
Ben Crawford, head of research at BarclayHedge, characterized the managed futures industry's July performance as "admirably" resilient amid elevated macroeconomic and health-related headwinds. Despite escalating concerns surrounding the Covid-19 Delta variant and accelerating community transmission rates, all trend-following sub-sectors finished the month in positive territory. Crawford noted that despite these challenges, global economies continued producing positive signals, enabling CTA funds to maintain their upward trajectory.
Beyond cryptocurrency strategies, systematic and diversified approaches also delivered solid returns. The MPI Barclays Elite Systematic Traders Index, which measures the average returns of the 20 largest systematic traders, advanced 0.74% in July and 8.51% year-to-date. The Diversified Traders Index, a broad measure of multi-strategy approaches, posted a 0.27% July gain while delivering over 7% returns for the full year. The Systematic Traders Index separately advanced 0.38% in July with a 4.56% year-to-date return, while the Agricultural Traders Index gained 0.52% during the month and 4.99% since the start of 2021.
Cryptocurrency traders dominated July performance, with digital asset strategies significantly outpacing all other CTA sub-sectors. The Cryptocurrency Traders Index achieved a 5.16% monthly return, commanding a substantial lead over competing strategies. This strength has translated into an exceptional year-to-date performance, with the cryptocurrency benchmark reaching 84% returns since January 2021, substantially exceeding gains in every other managed futures sub-sector tracked by BarclayHedge.
Ben Crawford, head of research at BarclayHedge, characterized the managed futures industry's July performance as "admirably" resilient amid elevated macroeconomic and health-related headwinds. Despite escalating concerns surrounding the Covid-19 Delta variant and accelerating community transmission rates, all trend-following sub-sectors finished the month in positive territory. Crawford noted that despite these challenges, global economies continued producing positive signals, enabling CTA funds to maintain their upward trajectory.
Beyond cryptocurrency strategies, systematic and diversified approaches also delivered solid returns. The MPI Barclays Elite Systematic Traders Index, which measures the average returns of the 20 largest systematic traders, advanced 0.74% in July and 8.51% year-to-date. The Diversified Traders Index, a broad measure of multi-strategy approaches, posted a 0.27% July gain while delivering over 7% returns for the full year. The Systematic Traders Index separately advanced 0.38% in July with a 4.56% year-to-date return, while the Agricultural Traders Index gained 0.52% during the month and 4.99% since the start of 2021.
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