Market Analysis: Kettera Strategies - March 2020 Report
In March 2025, the world of hedge funds showcased a mix of results across various strategies, with some outperforming while others struggled.
The BarclayHedge Currency Traders Index and BTOP FX Traders Index, among others, reported a strong performance for discretionary global macro strategies. These funds benefited from economic uncertainty and monetary policy divergences, capitalising on market inefficiencies and currency market volatility. The outlook for global macro strategies remained positive going into Q3 2025.
Quantitative strategies, including systematic trend programs, were the best performers for Q1 2025 overall, with asset-weighted returns of 2.4%. However, equally weighted returns were much lower (0.1%), indicating a disparity in sub-strategy returns within quant programs.
Equity long/short strategies, on the other hand, had negative returns for Q1 2025, specifically returning -1.7%. This trend continued into March, making it a challenging month for equity hedge strategies. However, equity funds led gains in June 2025, showing improvement after Q1.
AI and machine learning-based strategies, generally subsets of quant/micro quantitative strategies, did not perform well in March. However, the outlook for micro quantitative strategies, which likely include AI/ML approaches, remained positive for Q3 2025, expected to benefit from elevated interest rates and single-stock volatility.
Discretionary commodities managers focusing on energy and industrial commodities primarily, and some on base metals, generally excelled during March. The S&P GSCI Metals & Energy Index and S&P GSCI Ag Commodities Index reflect this trend, with the more successful programs being short base metals and energy, long US fixed income, and some that caught the "up-down" US dollar moves.
Short-term and higher-frequency programs generated mixed to net positive returns in March. Discretionary ag specialists had mixed results, with corn and soybeans falling while other products rallied.
The performance results of quant strategies were mixed, with single-digit gains or losses on the month. The CBOE Eurekahedge Relative Value Volatility Hedge Fund Index, for example, reported positive returns.
It's important to note that the views expressed in this article are not necessarily those of AlphaWeek or its publisher, The Sortino Group.
This article is a guest contribution under the Hedge Funds and Managed Futures sections. The Eurekahedge AI Hedge Fund Index, Eurekahedge Long Short Equities Hedge Fund Index, and Eurekahedge-Mizuho Multi-Strategy Index are among the indices mentioned.
While detailed data may not be publicly available for Kettera Strategies and discretionary commodities managers for March 2025, the trends suggest a continued dominance of macro and quant-led strategies over equity-focused approaches. Global macro strategies benefited from economic policy uncertainties and monetary divergence, while equity long/short struggled early in the year.
Sports enthusiasts may find solace in the stability of macro and quant-led strategies, as they excelled in March 2025, outperforming equity-focused approaches. The competitive nature of sports mirrors the currency market volatility that these strategies capitalized on, offering a source of inspiration for those seeking consistency and success.
