CTA managers seal 2015 with more losses

CommoditiesCommodity trading advisers (CTAs), which are hedge funds that typically invest in physical goods using derivatives, finished off a disappointing year with further losses in December.

Societe Generale (SG) data shows CTAs posted a negative return of 1.29% in December to finish 2015 flat.

European investors had grown disillusioned with CTA funds last year.

The SG Trend Index (a sub-set of the SG CTA Indices and which tracks trend-followers) was down by 2.08%, but the worst performance came from the Short Term Traders Index, which was down by 2.61% in December finishing the year with a loss of 5.07%.

James Skeggs, global head of alternative investments consulting at SG prime services, said: “Losses in December saw the end to a frustrating year in 2015 for CTA strategies. Strong gains from Q1 were given back in Q2, to then be followed by a series of alternating positive and negative months during the second half to end the year with flat performance.”

Newedge, a brokerage, previously provided the CTA indices. SG has since rebranded them as SG Prime Services Indices, following its 2014 acquisition of the firm.

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