{"id":83349,"date":"2019-10-21T00:01:16","date_gmt":"2019-10-20T22:01:16","guid":{"rendered":"http:\/\/beta.next-finance.net\/strategie\/trend-reversals-briefly-halted-the-cta-rise\/"},"modified":"2020-05-31T13:36:09","modified_gmt":"2020-05-31T11:36:09","slug":"trend-reversals-briefly-halted-the-cta-rise","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/uncategorized\/trend-reversals-briefly-halted-the-cta-rise\/","title":{"rendered":"Trend reversals briefly halted the CTA rise"},"content":{"rendered":"<p><iframe loading=\"lazy\" src=\"https:\/\/www.lyxor.com\/sites\/default\/files\/2019-10\/191008%20LYXOR%20%20PFerreira%20V3.mp4\" width=\"485\" height=\"400\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">\ufeff<\/span><\/iframe><\/p>\n<p>Despite the escalation of trade tensions during the<br \/>\nthird quarter, economic activity has remained quite<br \/>\nresilient. Macro data releases even managed to<br \/>\nbeat expectations in the U.S. and in Japan, leading<br \/>\nto a sudden rise in bond yields over the course of<br \/>\nSeptember. This movement had important<br \/>\nimplications in equity markets. It translated into a<br \/>\nrebound in value stocks and a reversal in<br \/>\nmomentum stocks.<\/p>\n<p>In the space of Alternative strategies, CTA and Macro strategies were impacted by these developments.<br \/>\nCTAs were down -2.6% in September due to their long positioning on fixed income, while Global Macro<br \/>\nstrategies were up +1.4%. Concurrently, Event Driven and L\/S Credit strategies were slightly up (+0.2 and<br \/>\n+0.3% respectively) and L\/S Equity strategies were flat. Yet, the dispersion within L\/S Equity strategies was<br \/>\nhigher than usual in September due to sector rotations.<\/p>\n<p>Yet, as of early Q4, the rise in bond yields and the sector rotation in equities appears to be behind us. CTAs<br \/>\nrebounded at the turn of the quarter. The rebound in value stocks proved to be short lived and we stay<br \/>\ncautious on this risk factor at this stage of the business cycle.<\/p>\n<p>Going forward, our stance remains defensive on equities (U\/W) on the back of the global industrial<br \/>\nslowdown, geopolitical risks and the challenging earnings season which is about to start in the U.S. In the<br \/>\nspace of alternative strategies, we have a preference for Market Neutral L\/S vs. Directional L\/S and we stay constructive on directional L\/S Credit and EM Global Macro strategies in a low bond yield environment which is set to last.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite the escalation of trade tensions during the<br \/>\nthird quarter, economic activity has remained quite<br \/>\nresilient. Macro data releases even managed to<br \/>\nbeat expectations in the U.S. and in Japan, leading<br \/>\nto a sudden rise in bond yields over the course of<br \/>\nSeptember. <\/p>\n","protected":false},"author":1,"featured_media":83347,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[2244,2245,2246,2247,2248,2249,2243,2250,2254,2252,2253],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/83349"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=83349"}],"version-history":[{"count":2,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/83349\/revisions"}],"predecessor-version":[{"id":95021,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/83349\/revisions\/95021"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/83347"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=83349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=83349"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=83349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}