With Tariff News Roiling Markets, Hedge Funds Find the Trend Isn't Their Friend
Turbulent markets have caught out trend-following investors—including funds run by Man Group, the world's largest listed hedge-fund firm. According to estimates from Man, which run through Tuesday:
AHL Alpha, a flagship trend-following strategy, is down about 5.7% for April. That brings losses this year to nearly 9.9%.
AHL Dimension, a multistrategy fund that incorporates trend-following algorithms, is down 5% this month, and 7% this year.
AHL Evolution, which mostly follows trends in over-the-counter markets, has lost 5% in April and 9.4% this year.
Trend-following funds aim to profit by latching onto and riding persistent market trends. That can get tough, however, when assets swing violently—and whipsaw moves in stocks, bonds, currencies and commodities have made life hard this year.
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