Key Takeaways
- • The Mulvaney Global Markets Fund suffered a catastrophic 40.67% loss in April alone and has declined 39.22% year-to-date, swinging nearly 52 percentage points from a January gain of 12.45%, with the exact cause undisclosed.
- • Trump's tariff policies triggered broad losses across managed futures funds in April, with the market disruption labeled "Liberation Day" generating three days of extreme losses for trend-following strategies.
- • The Tulip Trend Fund fell 8.1% in April and 28.5% year-to-date, with foreign exchange exposure accounting for more than eight percentage points of April losses and 12.5 percentage points annually.
- • Multiple high-profile managed futures funds posted double-digit April declines: Quantedge Global Fund (down 10% monthly, 5.12% year-to-date), Aspect Diversified Fund (9.6% monthly, 13.5% year-to-date), and DUNN WMA (3.18% monthly, 8.83% year-to-date).
- • Interest rate trades emerged as a bright spot for managed futures strategies in April, partially offsetting severe losses in currency and commodity markets.
Summary
Managed futures funds experienced severe losses throughout April 2025 following President Trump's tariff policies, which generated market turmoil broadly labeled "Liberation Day." The strategy class, typically characterized by trend-following approaches and designed to capitalize on directional market movements, proved vulnerable to the rapid policy shifts and resulting commodity and currency market disruption.
The Mulvaney Global Markets Fund endured the worst performance among major CTAs, posting a staggering 40.67% loss in April alone. Year-to-date, the fund has declined 39.22%, representing a dramatic reversal from its January gain of 12.45%—a swing of nearly 52 percentage points within three months. The fund declined to comment on the specific drivers of its losses. The Tulip Trend Fund similarly reported significant damage, falling 8.1% in April and 28.5% through April. According to Tulip's monthly client report, "Liberation Day" resulted in three consecutive days of extreme losses; while the fund recovered nearly half these losses subsequently, "significant losses remained in currency and commodity markets and to a lesser extent in stock markets." Foreign exchange positions proved particularly costly for Tulip, accounting for more than eight percentage points of April losses and approximately 12.5 percentage points year-to-date.
Additional funds across the sector reported substantial declines. Quantedge Global Fund fell approximately 10% in April and stands down 5.12% year-to-date, while Aspect Diversified Fund dropped 9.6% in April with a year-to-date loss of 13.5%. The DUNN World Monetary & Agriculture Program (WMA) posted a 3.18% April decline and an 8.83% year-to-date loss; its half-leverage variant, WMA Institutional, fell 1.53% in April. Among the affected funds, interest rate trades represented a relative bright spot, partially offsetting severe currency and commodity market underperformance during the volatile period.
The sustained April weakness follows what appears to be an ongoing period of challenge for trend-following strategies, with the tariff-driven market environment demonstrating the vulnerability of systematic approaches to rapid policy-driven dislocations across multiple asset classes.
The Mulvaney Global Markets Fund endured the worst performance among major CTAs, posting a staggering 40.67% loss in April alone. Year-to-date, the fund has declined 39.22%, representing a dramatic reversal from its January gain of 12.45%—a swing of nearly 52 percentage points within three months. The fund declined to comment on the specific drivers of its losses. The Tulip Trend Fund similarly reported significant damage, falling 8.1% in April and 28.5% through April. According to Tulip's monthly client report, "Liberation Day" resulted in three consecutive days of extreme losses; while the fund recovered nearly half these losses subsequently, "significant losses remained in currency and commodity markets and to a lesser extent in stock markets." Foreign exchange positions proved particularly costly for Tulip, accounting for more than eight percentage points of April losses and approximately 12.5 percentage points year-to-date.
Additional funds across the sector reported substantial declines. Quantedge Global Fund fell approximately 10% in April and stands down 5.12% year-to-date, while Aspect Diversified Fund dropped 9.6% in April with a year-to-date loss of 13.5%. The DUNN World Monetary & Agriculture Program (WMA) posted a 3.18% April decline and an 8.83% year-to-date loss; its half-leverage variant, WMA Institutional, fell 1.53% in April. Among the affected funds, interest rate trades represented a relative bright spot, partially offsetting severe currency and commodity market underperformance during the volatile period.
The sustained April weakness follows what appears to be an ongoing period of challenge for trend-following strategies, with the tariff-driven market environment demonstrating the vulnerability of systematic approaches to rapid policy-driven dislocations across multiple asset classes.
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