Kettera Strategies' February 2022 Heat Map Analysis
Kettera Strategies' Top Performers in February 2025
In a remarkable show of diversity, Kettera Strategies, a leading investment management firm, reported impressive results across various strategy categories in February 2025. The Kettera Strategies Heat Map for the month highlighted the top performers in each category.
The trend strategy saw a significant win with corn leading the pack. In the short-term strategy category, crude oil emerged as the frontrunner. The discretionary global macro strategy was bolstered by natural gas, while agricultural commodities continued to shine with corn at the helm. Industrial commodities, on the other hand, were propelled by copper.
Foreign exchange trading, however, experienced a flat to negative performance, with the Australian dollar/USD exchange rate causing setbacks to many programs. The benchmark sources for Kettera Strategies include the Eurekahedge Macro Hedge Fund Index, BarclayHedge Global Macro Index, Société Générale Trend CTA Index, and others.
Fixed Income seemed to be the second-best performing market sector for discretionary macro strategies. Kettera Strategies created research "style baskets" for analysis and comparison purposes, not for investment.
Discretionary global macro programs generally fared well in February, with strong gains in long precious metals trades and profitable commodities in general. Short-term strategies, however, presented a mixed bag, with many programs performing well in commodities and fixed income, but poorly in the FX markets.
In fixed income and interest rates, short positions in U.S. and European markets seemed to do well. Commodities prices were driven by persistently rising inflation, global supply chain disruptions, and escalating geopolitical tensions. Directional metals trading strategies that were long gold performed well, as gold broke out of a long-term choppy range.
Spread traders in grains and crude oil markets did not fare as well, particularly toward month-end. Grains and livestock trading was mixed in February, with directional long, and long-biased, positioning in grains leading to healthy gains. Spread traders short the front contracts in crude oil and long the back suffered badly, as the front end rallied much more strongly and quickly expanded the spread.
Equities were a slightly negative sector for discretionary macro strategies. In FX, a strong and sudden reversal mid-month in USD-based exchange rates caused problems for many shorter-term trading systems. Long commodities positioning, particularly in grains and crude markets, was the best performer for most longer-term trend programs in February.
It's important to note that the performance of these "style baskets" is based on monthly returns (net of fees) of programs on or for the Hydra Platform. Hypothetical performance results of these style baskets have many inherent limitations, including the fact that they are prepared with the benefit of hindsight. These style baskets are not investible products or index products being offered to investors.
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. It's also worth mentioning that several programs that were short the front contract in wheat while long the back contracts were caught in a record-breaking short squeeze in the front trading months.
All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the written permission of the publisher. Long equities positions were generally the biggest detractors to performance.
In conclusion, Kettera Strategies' February 2025 performance underscores the firm's ability to adapt and excel in a dynamic market environment. The firm's diverse strategy offerings, coupled with its robust research and analysis capabilities, continue to deliver strong results for its clients.
Read also:
- Ford Presents Economical Electric Vehicle Strategy: Boasts a Lower Total Expense over a Five-Year Period than a Pre-owned Tesla Model Y from Three Years Ago
- Evaluating the sound and rational reasoning behind the latest Metal Gear Solid V game
- Upcoming Electric Vehicles Worth Anticipating This Week
- TDK Ventures Pours Funds into Ultraviolette for Global Growth in Electric Motorcycles
