Kettera Strategies' Heat Map for the Month of November 2021
November 2021 saw a significant shift in market trends, impacting various investment strategies. Let's take a closer look at how Kettera Strategies fared during this turbulent period.
Systematic Trend Programs
These strategies continued to show strength, benefiting from persistent market trends. However, the late-November Covid news about the Omicron variant caused a sudden market reversal, hitting longer-term systematic trend strategies that were positioned in the "inflation trade" (long equities, long commodities, and short Fixed Income).
Industrial Commodities Specialists
Performance for industrial commodities specialists was generally positive, with some upward momentum in prices. However, metals traders, particularly those with long platinum positions, faced losses in base metals spreads and precious markets.
Agricultural Commodities Specialists
Agricultural commodities specialists faced headwinds due to increased volatility and mixed price movements in the markets. The grain markets, which spent most of the month in an uptrend, corrected on the news about the new Omicron Covid variant.
FX Strategies
FX strategies tended to remain stable to slightly positive, with currencies showing typical fluctuations but no major directional moves. While FX managers, in aggregate, had one of the best months in some time, there was a large variance in returns among programs.
Other Notable Indices
- The Eurekahedge Long Short Equities Hedge Fund Index, CBOE Eurekahedge Relative Value Volatility Hedge Fund Index, and Eurekahedge-Mizuho Multi-Strategy Index were also mentioned.
- The BarclayHedge Discretionary Traders Index, Barclay Ag Traders Index, NilssonHedge Commodities CTA Index, BarclayCrypto Traders Index, and BarclayHedge Currency Traders Index, along with the BTOP FX Traders Index, were also part of the discussion.
Equities and Fixed Income
Global equities, which had hit all-time highs earlier in the month, sold off quickly in the last days of November. Short Fixed Income positions also hit some programs badly as the world went "risk-off" in a hurry.
Notable Exceptions
A few natural gas traders managed to avoid the petroleum carnage and profited substantially by focusing only on short exposure to North American natural gas markets.
Disclaimer
The views expressed in this article are those of the author and not necessarily those of AlphaWeek or its publisher, The Sortino Group.
For more specific numeric performance data or detailed monthly reports, please refer to Kettera's official performance disclosures or investor communications.
Financing Kettera Strategies may have been impacted by the turbulent market conditions in November 2021, as many investment strategies faced challenges, especially systematic trend programs and equity positions. Investing in industrial commodities specialists, agricultural commodities specialists, or FX strategies might have provided some positive returns, but with potential losses in certain sectors or markets.
