News Digest: Managed Futures are rocking the charts, but will they sustain?
April 11, 2022
Returns from managed futures threw up some eye-catching numbers during March 2022, growing between 6% to 13%. This spike has pushed SocGen’s CTA index to its best-ever monthly and quarterly performance in two decades. The last such boom came on the back of the dot.com bust that drove up returns.
Analysts remain unsure over how to perceive this growth and wonder whether this signals the start of a new commodity super-cycle or an end of the multi-decade downtrend in interest rates. And if either of these happen, could they trigger an inflation shock or a bear market.
However, prospects of the top-5 performing quarters suggest that managed futures fared better than their longer-term average, indicating that it might well be just the right time for investors to jump into this space.