Key facts
- Trend-following hedge funds had an average negative return of 0.1% in June.
- Gold and silver trades helped offset losses in crude oil, coffee, and the Australian dollar.
- For the year to date, trend funds and CTAs are up over 9%.
- New positions since June 23 included long bets on cocoa and short wagers on wheat.
- The most crowded trades were in interest rates.
Trend-following hedge funds experienced a slight negative return of 0.1% in June, according to a note from Societe Generale seen by Reuters. This marginal dip was largely due to losses in crude oil, coffee, and the Australian dollar, which were offset by profitable trades in gold and silver. Despite the June performance, these systematic hedge funds and commodity trading advisors (CTAs) remain up over 9% for the year to date. The note indicated that fund returns for the year so far have ranged from a positive 11% to a negative 8%. New positions initiated since June 23 included long bets on cocoa and short wagers on wheat. However, recent price movements in cocoa (up over 18%) and wheat (up over 8%) suggest these new positions may have already incurred losses. The most crowded trades, according to the data cited, were in interest rates.