LONDON, Oct 8 (Reuters) - Gold and coffee helped to
deliver trend-following hedge funds a positive result in
September, a Societe Generale note showed on Tuesday, thanks to
record commodities prices, rising equities and falling interest
rates.
Gold has surged almost 30% this year to a record high on
Sept. 26. The precious metal has been one of the best performing
financial assets in 2024 for these kinds of hedge funds which
use price and trading volumes data to find and trade market
trends, said the SocGen note seen by Reuters.
Robusta coffee futures also reached record highs
last month.
Top coffee producer Brazil has suffered a drought which has
impacted much of the crop for the 2024-2025 season, pushing up
prices.
The mean return for the group of 96 funds tracked by Societe
Generale's prime brokerage trading desk returned roughly 0.7%
for September, with the highest return coming in at a positive
7.41% and the lowest at a negative 15.77% said the note.
Over half of the trend funds posted a positive return for
the month, the bank research showed.
The Australian dollar, though adding to hedge fund
performance in September, has drained the most from trend hedge
funds this year, the SocGen note said.
Other losing positions for the year-to-date included the
Mexican peso, silver and natural gas, it said. Sterling, though
it proved a positive position in September was still a losing
position for trend funds in the year so far.
The bank research did not show which pairs were on the other
side of the currency crosses, nor what kind of way the
commodities trades were structured.
New notable positions that trend followers entered towards
the end of September included long positions in Hong Kong's Hang
Seng stock index, sugar, silver, lean hogs, German and
Spanish stock indices the Canadian, Australian
and New Zealand dollar, said the bank.
A long position is essentially a bet that an asset will
rise in value.