News round-up: Trend-following funds set for best year since 2014; Crypto fund increases offering; Macro giant Rokos Capital Management appoints tech leaders and more!

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Trend-following Hedge Funds set for their best year since 2014

CTAs and trend-following hedge funds continue to advance towards their best annual performance in 7 years. Managers are maintaining profit from continued trends across multiple asset classes including commodities, bonds, equities, and indices.

2014 was a banner year for CTAs which saw the sector advance more than 15 per cent annually. Now with just two months left until the end of 2021, Société Générale’s main CTA Index – which charts the daily performances of 20 of the largest CTAs, is on track for its best performance since.

The index, which tracks funds managed by Man AHL, Graham Capital, Systematica, AQR, and Aspect Capital to name a few – remains up more than 9 per cent this year. It ended October on a high, generating 2.56 per cent for the month, though it has dropped 0.72 per cent in the first week of November.

Meanwhile, trend-following hedge funds, which are measured by SocGen’s SG Trend Index, increased more than 3 per cent in October, before dipping 1.34 per cent so far in November.

Overall, the benchmark – which includes the daily returns of 10 of the biggest trend-following hedge funds – is up by 12.43 per cent since the start of the year. This is around double 2020’s 6.28 per cent annual return, is also the index’s largest since 2014’s vast 19.7 per cent rise.

Tom Wrobel, director of capital consulting at Société Générale Prime Services and Clearing in London, noted that many trend-following strategies are comfortably in double-digit territory in the 10-month period since the start of January.

“The key sectors for CTA performance appear to have been commodities and equities in 2021, but October also highlighted that all asset classes are important, with significant opportunities for trend-followers in bonds, depending on individual model time-frames and portfolio construction approaches,” he added.

Crypto hedge fund Tyr Capital increases offering

Cryptocurrency hedge fund Tyr Capital is responding to soaring investor appetite for digital assets with the launch of a new long-only fund next year. The launch follows after its main multi-strategy scored double-digit returns this year.

The London-based firm is preparing to roll out a second fund, Tyr Capital Venture early next year to capitalise on booming allocator appetite. The new strategy is an actively managed, long-only fund targeting the longer-term returns of a portfolio of cryptocurrencies and early-stage projects.

As it stands, Cryptocurrencies have surged so much that their total value has reached nearly $2.5 trillion and have amassed more than 200 million users.

However, crypto remains a relatively niche in the hedge fund industry, with most retaining a focus on bonds, commodities, and other more established asset classes. But the fruitful returns available in digital assets are catching the eye of funds seeking opportunities that are often lacking elsewhere.

Macro giant Rokos Capital Management appoints tech leaders across New York and London

Ming Chen joins as Head of New York Technology. Ming Chen was most recently Head of Engineering for Assured Investments. Previous to this he was Chief Technology Officer as Goldman Sachs Asset Management (GSAM).

Jason Costa join Rokos New York office as Head of Data architecture following a 5 year stint at google. Costa has also worked for quant giant Two Sigma.

Lastly, Skaria Thomas joins Rokos in London from Millennium Management. Skaria joins as Head of Infrastructure. London-based Rokos Capital, which manages $12.5bn in assets is said to have lost around 18 per cent in October. Leaving the fund, headed by billionaire bond market specialist and former Brevan Howard co-founder Rokos, down more than 26 per cent this year.

The industry has been left suffering billions of dollars in losses after a sudden rethink on how and when central banks will reverse the huge wave of support they provided when the pandemic hit.

Managed Funds Association announces international partnership with CAASA

WASHINGTON, DC – Managed Funds Association (MFA), the leading organization representing the global alternative investment industry, announced the Canadian Association of Alternative Strategies and Assets (CAASA) as the first international member of the MFA Partnership Program.

“CAASA's membership features an impressive cross-section of the private funds ecosystem, including fund managers and allocators. Partnering with CAASA is an important step for the expansion of our regional partnership program,” said MFA President and CEO Bryan Corbett. “The inclusion of international partners supports MFA’s expanding global presence to better meet the needs of our globally-focused members and their investors—including pensions, foundations, and endowments."

CAASA is Canada’s largest association representing the alternative investment industry in Canada with more than 320 members — including alternative investment managers, pension plans, foundations, endowments, and service providers. Founded in 2018, CAASA's mission is to bring Canada to the world and the world to Canada by promoting information sharing, networking, and collaborative initiatives between its members and the industry at large.

The MFA Partnership Program aims to enhance the collective power of national, regional, and state alternative investment industry networks. The program works to increase collaboration, promote information sharing, build key allocator relationships, and create a more efficient and effective network to support, educate, and connect in markets in the U.S. and around the world.

Current members of the MFA Partnership program include the California Alternative Investments Association, Connecticut Hedge Fund Association, New York Alternative Investment Roundtable, Palm Beach Hedge Fund Association, and Texas Alternative Investments Association.

Carmen Bamford

Head of Event Content, HFM

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