Highlights

  • 2020 has been a challenging market environment for most investment portfolios. Few strategies seem eager to navigate this high volatility, fear-driven, and uncertain environment. Trend-following strategies have the potential to generate “crisis alpha” by adapting to the persistent trends that occur in the wake of market crisis.
  • During the high point of the COVID-19 crisis, some trend following strategies found opportunities that allowed them to outperform while navigating market moves, and evidence suggests that faster systems were better poised to move with such large moves.
  • Whether or not markets will experience a recovery or face a second or third wave of losses over the near or long-term remains unclear.

3137329.1.1