April has drawn to a close, and it shaped up to be a month of flat returns for traditional managed futures programs, with the Newedge CTA index* reporting managed futures down -0.06%.  Market selection played a big role in whether or a program made money this month. Traders who took advantage of trends in grains and European bonds did well.  Lack of sustained trends in major markets (metals, stock index, and currency) made life difficult for the rest.  For example, Clarke Capital had a great month while Covenant continued to struggle.  Both managers are trend followers, but Covenant had broader sector exposure and more exposure to choppy conditions.

Short term traders continue to struggle as well due to a lack of follow-through and market reversals across many sectors.  Short term traders were down an estimated -2.50% for the month.

Short option, specialty, and discretionary traders performed well in April justifying their diversification potential in a portfolio of trend following strategies.  Stand out performers included Global Ag +11.40%, Paskewitz Contrarian 3X Stock Index +3.50%, and Quantum Leap Capital +3.60%. (DISCLAIMER: PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.)