Strategic Insights: Kettera Heat Map - February 2023 Edition
In a comprehensive analysis of the hedge fund landscape, Kettera Strategies has provided insights into the performance of various strategies in February 20XX. Here's a summary of their findings, focusing on systematic trend strategies, discretionary global macro strategies, commodities specialists, and currency strategies.
Systematic Trend Strategies
The month was generally favourable for systematic trend managers, particularly those who anticipated the shift in favour of the US dollar early on. Many programs generated gains from short positions in North American and European bonds, as well as from short positions in the Canadian dollar and Chinese renminbi. Conversely, long exposure to the Mexican peso was a profitable move.
However, some systematic trend programs that entered February with long positions in the metals complex, such as precious metals, experienced losses as markets reversed into a sell-off. On the other hand, some agricultural traders found success with long-biased spread positions in Live Cattle and Feeder Cattle, as well as asymmetrical long-biased options spreads.
Discretionary Global Macro Strategies
Discretionary global macro strategies had mixed results in February. Winning positions were largely dominated by short Equities indices and long USD positions. For more macro-economic FX managers, the continued tightening by the U.S. Fed was seen as overdone, leading to more potential for short (vs long) USD positioning.
Commodities Specialists (Agriculture)
The agricultural commodities market was dominated by a late-month downward move in corn, wheat, and the soybean complex. Ag traders' returns were all over the spectrum, depending on how they navigated this general slide in these markets. The only common theme among discretionary global macro players was that profitable programs called the yield curve right in February.
Currency Strategies
Systematic FX managers pivoted from a short to long net U.S. dollar position versus G10 and emerging market currencies over the first two to three weeks of the month. This shift, combined with successful short positions in the Canadian dollar and Chinese renminbi, contributed to the overall success of systematic FX strategies in February.
While Kettera Strategies' February report provides valuable insights into these strategies' performance, it's important to note that this summary is not a direct quotation from their report. For a more detailed and up-to-date analysis, we recommend consulting Kettera Strategies' official reports.
