Trend-following hedge funds’ “dynamic features” can limit losses amid surging bond yields and rising inflation
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By Hugh Leask | 01/09/2020 - 1:04pm
Managed futures hedge fund strategies may be well-placed to withstand a continuing rise in bond yields, despite CTA performance being squeezed by the recent surge, Lyxor Asset Management strategists say. Rising inflation expectations saw bond yields tick upwards over the course of August, as core consumer price metrics in the US rose above market forecasts, which in turn negatively impacting certain hedge fund strategies.