Trend-Following: Why Now? A Macro Perspective

AQR
By December 6, 2022 14:40

Trend-Following: Why Now? A Macro Perspective

Trend-following managers are having a banner year so far in 2022 amidst a year of turmoil for traditional portfolios. Trend following has provided valuable diversification1 to investors who stuck with the strategy against losses in traditional allocations; the SG Trend Index has returned 36% year-to-date through September 2022, while the Global 60/402 declined -20%. Investors exploring an allocation to trend-following may be wondering if they are “late to the trade,” while also anchoring their expectations to the lean 2010s. Both the macroeconomic picture and empirical evidence, however, suggest that strong performance for trend-following may persist, making it a potentially valuable source of diversifying returns during a challenging time for the rest of investors’ portfolios.

AQR
By December 6, 2022 14:40

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