Kettera Strategies Heat Map for June 2022: Charting Trends and Investment Opportunities
In the fast-paced world of investment management, Kettera Strategies has released its June 2022 performance report, offering insights into the varying trends and outcomes across their different management styles and specializations.
- Systematic Trend Management
The systematic trend management approach continued to exhibit robust performance, driven by persistent market trends and momentum signals. Kettera's trend-following programs demonstrated resilience in trending markets, capitalising on sustained price movements across diverse asset classes.
- Discretionary Global Macro Management
Discretionary global macro managers showed mixed results, reflecting the challenge of navigating complex macroeconomic environments during mid-2022. Performance was influenced by timely top-down decisions but faced pressures from market volatility and geopolitical uncertainties.
- Commodity Specialization (Agricultural and Industrial)
Agricultural commodity strategies benefited from supply-demand imbalances, weather disruptions, and geopolitical events affecting food markets. On the other hand, industrial commodity strategies experienced volatility due to shifts in manufacturing activity and energy prices but managed to capture gains from sector-specific trends.
- Shorter-Term Strategies
Shorter-term strategies delivered more variable performance, with some gains from capturing quick market swings but also exposures to higher transaction costs and rapid reversals. Performance was sensitive to abrupt market changes, reflecting the challenges and opportunities of high-frequency or shorter-term trading approaches.
The report also shed light on the performance of specific sectors. Many programs sustained losses in long energy and agricultural commodities positions due to factors such as favourable weather forecasts, recession fears, renewed lockdowns, and a benign USDA acreage report.
Precious metals, especially gold, sold off in June due to a strong USD and rising yields. Base metals sold off harshly due to recession fears and lower demand expectations, overwhelming fundamental traders positioned long based on supply shortages.
Energy traders, particularly spread traders in natural gas, were able to profit from falling prices, although some were rewarded with long exposure to European power. Successful programs were short fixed income and rates, particularly in Europe, and long USD vs. G10 and commodity currencies.
It is important to note that the style baskets are not investible products or index products being offered to investors. They are meant purely for analysis and comparison purposes, not to stimulate interest in any underlying or associated program. The indices and financial benchmarks shown are for illustrative purposes only and do not reflect the impact of advisory fees.
The performance arrows in the style baskets represent the overall performance for the month. The weighting of a program in a basket depends on whether it is currently or formerly on Hydra, or under review with an expectation of being added.
The views expressed in this article are those of the author and not necessarily those of AlphaWeek or its publisher, The Sortino Group. Hypothetical performance results of style baskets have many inherent limitations.
In June, trend followers in Kettera's style basket underperformed the industry benchmark due to over-allocation to long energy and agricultural commodities.
As we move forward, understanding the distinct performance trends across various management styles and specializations can provide valuable insights for investors seeking to navigate the dynamic investment landscape.
- Leveraging advancements in technology, Kettera Strategies analyzed data from diverse financial markets to make informed decisions about investing in trend-following programs, focusing on the performance of systematic trend management.
- In the ever-evolving world of finance, investors can capitalize on insights drawn from the June 2022 performance report, which shed light on the combination of technology and investing, as seen in the success of discretionary global macro managers that navigated complex economic environments despite market volatility and geopolitical uncertainties.
