Kettera Strategies' July 2021 Heat Map Analysis
In the world of managed futures, July 2025 saw a mixed bag of results, with certain markets proving to be more profitable than others. However, due to the limited information available, specifically from Kettera Strategies, the exact top performing markets for systematic trend programs, discretionary global macro programs, and agricultural commodities specialists remains undetermined.
The analysis of the market performance in July was based on several benchmark sources, including the IndexIQ Hedge Global Macro Beta Index, Societe Generale Trend Index and SG CTA Index, Societe Generale Short-term Traders Index, the Eurekahedge AI Hedge Fund Index, the Eurekahedge-Mizuho Multi-Strategy Index, the CBOE Eurekahedge Relative Value Volatility Hedge Fund Index, and various financial benchmarks such as the BarclayHedge Currency Traders Index, BTOP FX Traders Index, Barclay Crypto Traders Index, BarclayHedge Discretionary Traders Index, Barclay Ag Traders Index, and NilssonHedge Commodities CTA Index.
Systematic trend programs generally experienced positive returns in July, albeit with a wide variation depending on the market sectors traded. More diversified programs saw upside from commodities, particularly long positions in energy markets and coffee. Coffee, in fact, was likely the star performer for managers that include softs in their repertoire, due to the impact of drought conditions and frosts.
For "mainstream" systematic managers, the most common profitable trade was long global fixed income markets, particularly Eurozone interest rate markets. Relative value programs from agricultural commodities specialists also capitalized on consolidation in some markets, including range-bound trading in corn and soybeans.
However, equity indices were either slightly profitable or a mixed bag for most systematic managers, and currencies were particularly challenging. Equities were much more difficult for short-term systems due to sudden reversals and counter-reversals. Short-term models in July tended to be volatility breakout and short-term momentum systems, and they benefited most from fixed income markets.
It's important to note that style baskets, such as those referenced in this article, are research tools created by Kettera Strategies to track categories and are not investible products or index products. The performance of these style baskets is based on monthly returns (net of fees) of programs currently or formerly on the Hydra Platform or under review for addition.
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. This guest article for Hedge Funds falls under the category of Managed Futures.
In conclusion, while the exact top performing markets for July 2025 cannot be definitively stated due to the lack of specific information, it is clear that the managed futures market presented a variety of opportunities and challenges during that month.
Technology played a significant role in analyzing the performance of the managed futures market in July 2025, with data-and-cloud-computing platforms facilitating the collection and interpretation of vast amounts of market data. This enabled systematic investing strategies to identify profit opportunities more efficiently, as seen in the strong performance of commodities, especially coffee.
Moreover, technological advancements have enabled the development of innovative investing strategies, such as short-term momentum systems and relative value programs from agricultural commodities specialists, which performed well in the turbulent equity and currency markets of July 2025.
