Coquest 40 Index August 2019 Update

The Coquest 40 continued its strong 2019, delivering a 3.62% return for the month of August. Year to date the 40 is up 12.69%. Positive performance for the month was primarily driven by trend-followers who profited on the back of long bond positons as investors fled to safe haven assets due to global economic fears. Trend following constituents make up the bulk of the index and finished up 5.56% for the month and 17.27% on the year respectively, on a weighted average basis. The performance for the systematic non-trend managers included in the index, which largely consists of systematic global macro managers, was mixed but ultimately finished down 97 basis points due to the reversal in risk sentiment resulting in losses in short fixed income and long equity positions. 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 August up 2.44% and 2.62%. The relative strength of the USD, JPY, and CHF to riskier currencies contributed to profits in FX strategies, while short term strategies were able to benefit from price breakouts in bonds, safe haven currencies, and precious metals.