Kettera Strategies' October 2021 Heat Map Insights
In October 2021, a series of significant rallies were observed across various markets. Metals and energy sectors, in particular, experienced impressive surges. Crude oil saw an increase of 11.3%, copper rose by 6.5%, ethanol climbed 11.0%, and silver registered an 8.1% gain, among others.
This strong performance was reflected in several indices. The BarclayHedge Discretionary Traders Index, Barclay Ag Traders Index, NilssonHedge Commodities CTA Index, Eurekahedge Long Short Equities Hedge Fund Index, Eurekahedge-Mizuho Multi-Strategy Index, and the CBOE Eurekahedge Relative Value Volatility Hedge Fund Index all noted positive returns.
Short-term and higher frequency strategies, including those in the equities sector, were the biggest profit generators for many managers. Currencies and energy markets also performed well for short-term strategies, with natural gas peaking early in the month and then selling off dramatically, providing opportunities for nimble traders.
Contrary to the trend, fixed income was the biggest detractor across the board, particularly on the shorter end of the curve, as global short-term rates spiked abruptly.
However, a lack of a clear theme was evident in the performance of systematic trend programs, with many crediting FX markets and commodities for their returns, but with little commonality. The biggest outperformer in the short-term bucket was a systematic manager that averages over days and trades a diversity of market sectors.
Long positions in precious metals bull spreads and tactical shorts in base metals were successful strategies for some managers. Notable among these were metals specialists on Hydra, who reported one of their best months in years.
The Barclay Crypto Traders Index, BarclayHedge Currency Traders Index, and BTOP FX Traders Index also showed positive results. The Eurekahedge AI Hedge Fund Index, a blend of BarclayHedge Equity Market Neutral Index and Eurekahedge Equity Mkt Neutral Index, also performed well.
It's important to note that longer-timed systems with greater diversification appeared to perform better than shorter-timed systems. Equities indices were also on the positive side in October.
The views expressed in this article do not necessarily reflect the views of AlphaWeek or its publisher, The Sortino Group. For authoritative details from Kettera Strategies specifically, we recommend consulting their official reports or market commentaries published around or after October 2021.
Investors in the finance sector, particularly those focusing on investing, might have benefited from the strong performance of various markets in October 2021. Notable gains were seen in energy markets, such as crude oil and natural gas, as well as metals like copper and silver. Some short-term strategies, particularly in equities, currencies, and energy markets, were successful for many managers, with long positions in precious metals bull spreads being a profitable strategy for metals specialists.
