Coquest 40 Index October 2019 Update

The Coquest 40 struggled through its second consecutive negative month, finishing down 2.45% for October. Year to date the 40 remains in positive territory, up 7.15%. Negative performance for the month was primarily driven by trend-followers who suffered losses from rising fixed income yields across the US, UK, and Europe coupled with losses from long USD positions against the Euro and Pound. US equities bounced back following a rough start to the month after progress between US and China over a trade deal. Trend following constituents make up the bulk of the index and finished down 3.74% for the month, but remain up 7.89% on the year, 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 up 48 basis points due in part to gains from long global equity and Euro and Pound 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 October down 2.85% and up 1.30% respectively. A weaker USD for the month contributed to losses in FX strategies, while short term strategies were able to capture gains in long equity positions.