Strategic Analysis Heat Chart - July 2022
July 2025 saw a mixed bag of results for various hedge fund style baskets, according to data from AlphaWeek.
The month began with a strong rally in global equities and bond prices, but many trends went against the LT Trend Followers' net short equity, long commodity, short fixed-income & rates, and long US Dollar positioning. Despite this, the systematic trend managers' style basket was largely flat overall.
The discretionary global macro managers also displayed a similar flat overall performance for the month. Commodity specialists, including agricultural traders, also saw minimal movement in their style basket's performance. Shorter-term strategies also showed a sideways or flat performance.
The heat map from AlphaWeek specifically shows that all these style baskets had minimal net movement or were stagnant in terms of performance during July 2025. There were no significant positive or negative returns noted for these categories.
In contrast, the base and precious metals markets continued their sell-off, benefiting disciplined traders who held on to their short exposures. Natural Gas traders caught a strong rally throughout the month, rewarding long-biased spreads and directional exposures.
The quickest (higher frequency) models fared well, catching the reversals in equities, fixed income, FX, and commodities. A blend of the Barclay Discretionary Traders Index and the Bridge Alternatives Commodity Hedge Fund Index was presented, while the Barclay Agricultural Traders Index and the Barclay Currency Traders Index were also listed.
Fixed Income losses appeared to be the biggest detractor for most systematic managers. Base on the data, many energies and metals specialists had a profitable month in July. The USD and many industrial commodities reversed mid-month.
A blend of the Eurekahedge Relative Value Volatility Hedge Fund Index and the Eurekahedge Long Volatility Index, as well as a blend of the Eurekahedge Asset Weighted Multi Strategy Asset Weighted Index and the Barclay Hedge Fund Multi Strategy Index, were also presented. The Hedge Fund Intelligence Global Macro Index and the Eurekahedge Macro Hedge Fund Index were blended.
While typically a difficult category to pin down, short-term strategies had a challenging month due to choppy markets across most sectors. Short-term programs with slightly longer models suffered in the sharp reversals in equities and fixed income, pulling the sector down into negative territory.
In conclusion, July 2025 was a month of mixed results for various hedge fund style baskets. While some categories saw minimal movement or stagnation, others, such as natural gas and precious metals, experienced significant swings. Investors should closely monitor market trends to make informed decisions.
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