Strategic Analysis Heat Map for November 2023 by Kettera Strategies
In the financial world of November 202X, hedge fund strategies showed a mixed performance, with some outperforming and others underperforming the broader benchmarks.
Kettera Strategies, a research organisation, created style baskets for analysis and comparison purposes. These style baskets are classifications drawn in their review of programs on the Hydra Platform. The weighting of a program in a style basket depends on whether it is currently or formerly on Hydra, or under review with an expectation of being added to Hydra.
FX strategies underperformed the broader FX benchmark in November, with many fundamental-economic based approaches positioned long USD. This underperformance can be attributed to the US Dollar's reversal of course and weakening against most G10 and emerging market currencies, as the US Dollar Index (DXY) was down 3.5% by month-end.
On the other hand, Discretionary macro programs overall appeared to have a very solid month, but underperformed broader industry benchmarks. Many successful programs were nimble enough to catch the strong equity rallies, exit short fixed income exposures, and go long currencies vs. the USD.
Commodities were the only sector where these programs fared well. Some programs profited from short energy exposures, long softs, and long precious and base metals. However, Agricultural commodities traders were largely negative last month, with corn stuck in a tight range, prices across the soy complex up on weather concerns in Brazil, and wheat prices up slightly.
In the realm of long-term trend followers (Systematic Trend Managers), November was a difficult month due to the reversal of several long-standing trends. Indices and other financial benchmarks shown are for illustrative purposes only and do not reflect the impact of advisory fees.
It is important to note that the views expressed in this article are those of the author and do not necessarily reflect the views of AlphaWeek or its publisher, The Sortino Group.
For those seeking the performance of specific hedge fund strategies for November 202X, it would be necessary to consult specialized hedge fund industry reports or databases such as HFR, BarclayHedge, or eVestment, which track hedge fund performance by strategy and time period.
The arrows in the style baskets represent the overall performance for the month. Bonds and other interest rate markets rallied strongly, ending a long-standing short exposure in most portfolios. A few programs were positioned short bonds and long USD when both trends reversed, and unable to exit and flip positions quickly enough. Equity indices rallied strongly, ending a downward trend that began in August.
Finally, it's crucial to remember that hypothetical performance results of style baskets have many inherent limitations. The market determined that no further rate hikes would occur, and increased the possibility of sooner cuts in the first half of 2024. Systematic price-based programs generally seemed to outperform the more fundamental trading approaches in FX strategies.
[1] Detailed record of institutional holdings changes for AMD stock in 2025 but no hedge fund strategy performance data. [2] HSBC's interim report and other investment market commentary discuss interest rates, credit markets, and broader fixed income outlooks but do not specify hedge fund strategy returns in November 202X. [3] Morgan Stanley Investment Funds prospectus explains their investment approach but lacks monthly performance metrics by strategy. [4] Money market fund asset movements are reported but do not relate to hedge fund strategies or performance specifics in November 202X.
- Kettera Strategies, in their analysis of programs on the Hydra Platform, found that systematic price-based programs, a type of investing strategy, generally outperformed the more fundamental trading approaches in FX strategies during November 202X.
- For those interested in the performance of technology-focused hedge fund strategies, such as those invested in stocks like AMD, detailed records of institutional holdings changes during the year 2025 may provide some insights, although specific strategy performance data for November 202X would be lacking.
