Trend-following hedge funds edged into negative territory in June, with trades in gold and silver mostly offsetting losses in crude oil, coffee, and the Australian dollar, according to a note from Societe Generale.
Market Trends
Gold, often viewed as a hedge against inflation, fell nearly 12% in June, delivering a profit to funds that had bet against it. Systematic hedge funds, whose algorithms ride market trends, delivered an average negative return of 0.1% in June, but trend funds and commodity trading advisers were still up over 9% for the year.
The note highlighted that silver, gold, and equities added to positive returns for the cohort, while losing bets included crude oil, heating oil, and the Australian dollar. New positions that trend funds had piled into since June 23 included long bets on cocoa and short wagers in wheat.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
