Coquest 40 Index April 2021 Update

The Coquest 40 Index finished April up +1.76%, bringing YTD performance to +4.59%.

The global economic recovery continued to accelerate in April as equity and commodity markets trended higher off the back of accommodative monetary and fiscal policies and increased demand for raw materials. Inflationary fears continued to persist during the month as well, pushing commodity prices to elevated levels.

Trend following constituents make up the bulk of the index and ended the month up +2.59% on a weighted average basis. Long commodity exposure in agricultural products and base metals were responsible for most of the gains in April, while long energy positions contributed marginally. Long U.S. and European equities added positive performance as well with developed economies recovering from the pandemic at a swifter pace. The largest detractor among trend managers was short-fixed income positions on the longer end of the curve.

Systematic non-trend managers included in the index, which largely consists of systematic global macro strategies, finished up +2.34% on a weighted average basis. Performance within the strategy bucket was mostly positive with many managers able to profit from long U.S. and European equities and long commodity sectors such as agricultural/softs, base metals, and energies.

The foreign exchange and short-term managers included in the index make up the remaining assets in the Coquest 40 and ended the month of April down -4.95% and up +1.18%, respectively. FX strategies recorded losses from long positions in USD versus European and commodity currencies, while short-term manager performance, albeit mixed, benefitted from long U.S. equities and commodities.


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Disclosure: The risk of loss in trading futures and/or options is substantial. Past performance is not indicative of future results. The information in this message derived from third-party sources is believed to be accurate and reliable; Coquest does not guarantee the accuracy or completeness of the information. Opinions expressed in this material are subject to change without notice. This report should not be interpreted as a request to engage in any transaction of futures, options, and/or OTC derivatives. The information contained in this material is not to be relied upon in substitution for the exercise of your independent judgment. Seek independent financial, tax, legal, and accounting advice from your own professional advisers, based upon your particular circumstances.