This paper is the first of a new series, Just the FAQs, addressing those questions we are receiving most often from our investors. Through the end of May 2022, CTAs are off to their best start to a calendar year since 1995 using the Barclay CTA Index as a proxy, exceeding early returns from 2008. Consequently, both those who have recently benefited from a trend-following allocation and others considering new investments are now asking the same question: “What has changed?”
Diversification is at the heart of how CTAs build their strategies. The decisions managers make when diversifying across markets, timeframes and investment styles are influenced by their return objectives and have a direct impact on performance. This paper explores some of those choices.
EXPLORING RESPONSIBLE INVESTING AND THE ABILITY OF CTAS TO EFFECT POSITIVE CHANGE
This new discussion paper from the Lynx Sustainability Forum – Managing the Future – explores the challenges and opportunities for CTAs to incorporate ESG and sustainability principles in their approach. As active participants in the global futures markets, CTAs contribute to a sustainable financial system by enhancing transparency and allowing businesses and investors to hedge their risks efficiently. However, responsible investing techniques developed for equity and debt securities cannot be readily translated to managed futures since contracts do not convey legal ownership or control of the underlying assets. Additionally, there is no broadly accepted framework in place to classify futures contracts using environmental, social, and governance (ESG) principles.
The paper is meant to raise relevant questions and inspire conversations, rather than draw definitive conclusions. We welcome your feedback and look forward to having those conversation with you.
Historically, few investments have been able to provide an effective hedge against inflation. For those looking to mitigate potential downside equity risk should inflation begin to rise above currently subdued levels, finding an answer could become increasingly important. Our latest Insights paper explores a possible solution.
In this video, Senior Managing Director Martin Källström discusses machine learning and its application in quantitative finance with Andreas Bernsel, a Senior Research Partner and Portfolio Manager at Lynx. This video is also available in an extended version. Please contact email@example.com for more information.
2020 and Beyond
The link below will take you to 2020 and Beyond, our recap of last year’s most notable events, their impact on the markets that we trade, and the opportunities that they present going forward.
In this video, Senior Managing Director Martin Källström discusses advanced trend following techniques with Jesper Sandin, a Partner and Portfolio Manager at Lynx.