Following a challenging start to the year, CTA Indices showed signs of improvement with over half of trend constituents in positive territory in February. The SG CTA Index was up by 0.42 per cent, whilst the SG Trend Index was up by 0.81 per cent.

Short term strategies struggled and underperformed other strategies, with the SG STTI down by -1.19 per cent for the month.
 
The SG Trend Indicator attributed February’s positive results to gains in currencies and a selection of commodity markets, as well as trends in interest rate markets. Long positions in bond markets reverted slightly, leading to small losses, whilst positions in equity markets began to adapt to the renewed upward trend.
 
Tom Wrobel (pictured), Director of Alternative Investments Consulting, at Societe Generale Prime Services, says: “We’ve seen an uptick of performance in February, and we maintain the benefits CTA strategies can have in diversified portfolios. It will be interesting to observe if CTA’s can continue this upward trend as we look towards March and the rest of the year.”