Alternative Investments

A relatively buoyant environment for Equity Market Neutral strategies.

2022 was a landmark year for monetary policy, with Central banks shifting priority from supporting growth to taming inflation.

After several decades of riding a government bonds bull market, investors are now looking for alternative drivers of return. Commodity Trading Advisor (CTA) strategies, with their ability to make gains in rising, as well as falling markets, have historically been able to improve risk-adjusted returns when introduced to a balanced portfolio. However, a question that investors can legitimately ask today is how are CTAs impacted by rising interest rates?