CTAs Surge Again in February

It has been a very strong start to the year for CTAs, following an equally solid end to 2025, with firms reporting positive returns for the seventh successive month, according to the Barclay CTA Index, managed by BarclayHedge.

The headline index was +2.05% in February, with just under 90% of funds reporting results, adding to a strong January to bring the index to +4.77% year-to-date. Within this, all sub-indices were in positive territory, with the exception, for the fifth consecutive month, of crytpo traders. The Barclay Cryptocurrency Traders Index was down 7.53% in February, for -10.33% on the year. Since October, the index is down more than 20%, although this is better than the performance of bitcoin over the same period – the latter has almost halved in value.

On a more positive note, it was a better month, again, for systematic traders, with the MPI Barclay Elite Systematic Traders Index, which seeks to capture the returns of the largest 20 systematic traders, the best performer at +3.01% in February, for +6.68% year-to-date. This is second best across the sub-indices, beaten only by the Diversified Traders index at +6.82% year-to-date, after a +2.66% return in February.

Currency traders eked out minor gains, at +0.09%, for +0.56% for the first two months of the year, while the Fin./Met. Traders Index was +1.3% for +1.99% year-to-date.

For the first time in some months, the Systematic Traders Index outperformed its discretionary peer. The former was +2.17% in February for +4.89% year-to-date, while the Discretionary Traders Index was +1.99%. Year-to-date, the latter remains in better shape at +5.79%.

Interestingly, the opposite was the case with the SG Prime Indices, where the SG Macro Trading Index (Discretionary) was +1.81% in February, compared to +1.67% for the equivalent quantitative index. Over the first two month, the discretionary traders continue to outperform their quant peers by +6.71% to +2.99%. The headline SG Macro Trading Index was +1.75% in February, for +5.27% year-to-date.

Back at BarclayHedge, the BTOP50 Index, which seeks to replicate the overall composition of the managed futures industry with regard to trading style and overall market exposure, also had a good month at +3.5%. This brings year-to-date performance to an impressive +8.54%, although early indicators are that the index has given some of this back in March.