Asset Class Scoreboard: January 2019

Feb. 10, 2019 4:47 AM ETBND, QAI, GSG, IYR, ACWX, SPY
Jeff Malec profile picture
Jeff Malec
717 Followers

Summary

  • Investors rushed to remember what a positive month looks like after basically every asset class was down in 2018, with stocks flirting with a rare double-digit gain while real estate managed the feat.
  • Managed futures, meanwhile, found themselves on the wrong side of the trend reversal.
  • This chart won't look the same come the end of 2019 as it does now at the beginning.

Wow! That was a bounce. In the words of Mr. Castanza "I'm back… baby!". Or if you want something a bit more modern…."Chewie… we're home!". Either way, investors rushed to remember what a positive month looks like after basically every asset class was down in 2018, with stocks flirting with a rare double-digit gain while real estate managed the feat. Managed futures, meanwhile, found themselves on the wrong side of the trend reversal, fighting to limit losses on the month. One thing we're sure of, this chart won't look the same come the end of 2019 as it does now at the beginning.

Past performance is not necessarily indicative of future results.

Sources: Managed Futures = SocGen CTA Index;
Cash = US T-Bill 13-week coupon equivalent annual rate, with YTD the average of each month's value;
Bonds = Vanguard Total Bond Market ETF (NYSEARCA:BND);
Hedge Funds = IQ Hedge Multi-Strategy Tracker ETF (NYSEARCA:QAI);
Commodities = iShares S&P GSCI Commodity-Indexed Trust ETF (NYSEARCA:GSG);
Real Estate = iShares U.S. Real Estate ETF (NYSEARCA:IYR);
World Stocks = iShares MSCI ACWI ex-U.S. ETF (NASDAQ:ACWX);
US Stocks = SPDR S&P 500 ETF (NYSEARCA:SPY).

All ETF performance data from Morningstar.com

Disclaimer

The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges

This article was written by

Jeff Malec profile picture
717 Followers
Jeff Malec is the CEO and founding partner of Attain Capital Management (www.AttainCapital.com) - a commodity futures brokerage and research firm specializing in managed futures investments through individually managed accounts and privately offered funds. Please read the important disclaimer regarding managed futures below: Disclaimer: Composite performance records are hypothetical in nature, and the trading advisors have not traded together in the manner shown in the composite. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any multi-advisor managed account or pool will or is likely to achieve a composite performance record similar to that shown. In fact, there are frequently sharp differences between a hypothetical composite performance record and the actual record subsequently achieved. One of the limitations of a hypothetical composite performance record is that decisions relating to the selection of trading advisors and the allocation of assets among those trading advisors were made with the benefit of hindsight based upon the historical rates of return of the selected trading advisors. Therefore, composite performance records invariably show positive rates of return. Another inherent limitation on these results is that the allocation decisions reflected in the performance record were not made under actual market conditions and, therefore, cannot completely account for the impact of financial risk in actual trading. Furthermore, the composite performance record may be distorted because the allocation of assets changes from time to time and these adjustments are not reflected in the composite. Forex trading, commodity trading, managed futures, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. Unless distinctly noted otherwise, the data and graphs included herein are intended to be mere examples and exhibits of the topic discussed, are for educational and illustrative purposes only, and do not represent trading in actual accounts. The mention of asset class performance is based on the noted source index (i.e. Newedge CTA Index, S&P 500 Index, etc.), and investors should take care to understand that any index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices: such as survivorship and self reporting biases, and instant history. Past performance is not necessarily indicative of future results. The regulations of the CFTC require that prospective clients of a managed futures program (CTA) receive a disclosure document when they are solicited to enter into an agreement whereby the CTA will direct or guide the client's commodity interest trading and that certain risk factors be highlighted. The disclosure document contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA.

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