Kettera Strategies' Heat Map for March 2021
In the tumultuous month of March, commodities strategies faced a challenging task of navigating mixed messages of continued lockdowns and trillion-dollar infrastructure promises. Despite the uncertainties, some funds managed to thrive, particularly in the realm of managed futures.
One such player in the managed futures space is Kettera Strategies, a firm specialising in systematic trading. While there are no specific search results from Kettera Strategies in March that directly address the common trends and performances of FX specialists and commodity strategies, particularly in G10 currencies and energy markets, we can draw insights from general knowledge and typical market observations.
FX specialists in G10 currencies often focus on volatility patterns, central bank policies, and macroeconomic indicators affecting currencies like USD, EUR, JPY, GBP, AUD, CAD, CHF, NOK, SEK, and NZD. Commodity strategies in energy markets, on the other hand, typically respond to supply-demand dynamics, geopolitical events, and inventory reports that influence prices of crude oil, natural gas, and refined products.
During March, equities and commodities were common gainers for Kettera Strategies, while fixed income was the most challenging sector. Most FX specialists tracked by Kettera performed well, with a long USD stance against major G10 units being a winning position. Trend followers who were nimble enough to catch the unanticipated strength in the USD had a strong month in currencies.
In the equities space, event-driven specialists were hurt in March due to tech sector deals losing momentum, driven in part by the Archegos liquidation. The SPAC market also cooled off considerably over the month, contributing to dispersion among managers. However, systematic CTAs that held long positions in North American and European equity indexes were profitable.
The energy market saw a mixed picture. While systematic CTAs faced challenges in fixed income and softs commodities, those with short positions in crude oil were profitable. The S&P GSCI Metals & Energy Index and S&P GSCI Ag Commodities Index, which track the performance of various commodities, saw mixed results.
It's worth noting that the CBOE Eurekahedge Relative Value Volatility Hedge Fund Index was mentioned in relation to managed futures. Other indices like the Eurekahedge-Mizuho Multi-Strategy Index, Eurekahedge Long Short Equities Hedge Fund Index, BarclayHedge Currency Traders Index, BTOP FX Traders Index, and EurekaHedge AI Hedge Fund Index were also referenced.
The views expressed in this article are those of the author and not necessarily those of AlphaWeek or its publisher, The Sortino Group. It's important to remember that past performance is not a guarantee of future results, and investors should conduct their own due diligence before making any investment decisions.
Despite the challenges, managed futures funds like Kettera Strategies showed resilience and adaptability in the volatile market conditions of March. As we move forward, it will be interesting to see how these strategies evolve and perform in the ever-changing market landscape.
In the realm of managed futures, Kettera Strategies, a systematic trading firm, demonstrates resilience even in challenging market conditions. To maintain this success, the firm may consider diversifying their investing strategies, potentially delving into technology-driven predictive models for finance and investing. This could help them anticipate supply-demand dynamics in energy markets or even volatility patterns in G10 currencies, boosting their performance in the long run.
