Coquest 40 Index January 2020 Update
The Coquest 40 Index was positive for the month of January, finishing up 1.02% on a weighted average basis. Performance was mixed across strategy buckets. Trend following constituents make up the bulk of the index and finished up 0.81% for the month. Positive economic data and the signing of the phase one trade deal lead to a strong start for US equities, but gains were erased as Coronavirus fears spread. Losses on Asian equity indices were offset by gains from long fixed income positions across the US and Europe. Trend-follower’s also profited from declines in the energy sector. Performance for the systematic non-trend managers included in the index, which largely consists of systematic global macro managers, was mixed, finishing down 0.35% for the month. 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 January up 3.68% and 5.04% respectively. Due to safe-haven demand, FX strategies were able to profit from net long USD positions while short term strategies were able to capture positive results from the reversal in global equity indices and declines in yields.
