Investing in derivatives could offer massive gains if everything go according to plan. On the other hand, if the trade goes wrong, investors could incur heavy losses. If you want to invest in derivatives but with less downside risk, one good option is to invest through systematic trend funds. Such funds utilize trend-following, price-momentum strategies to invest in futures, options, swaps and foreign exchange contracts. Generally, such funds invest more than 60% of their assets in derivative securities. Let’s take a look at the 10 best-performing systematic trend funds.
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The 10 Best-Performing Systematic Trend Funds
The Goldman Sachs Managed Futures Strategy Fund (MUTF:GMSAX) uses a trend-following strategy to take long or short positions in varying asset classes, including commodities and currencies, equities, fixed income, and more. It has returned over 14% in the last three months and over 9% in the last three years. GMSAX has over $300 million in total assets. As of the end of February, the fund's top two holdings were: the Goldman Sachs FS Government Instl and the 10-Year Australian Treasury Bond Future expiring on Mar. 22.
The AlphaSimplex Managed Futures Strategy Fund (MUTF:AMFAX) normally invests in money market and other short-term, high-quality securities, especially in the financial services industry. It has returned over 18% in the last three months and almost 14% in the last three years. AMFAX has over $2 billion in total assets. As of the end of February, the fund's top two holdings were: the Asg Managed Fut Strat Cayman Capstock Shares and United States Treasury Bills 0.01%.
The GuidePath® Managed Futures Strategy Fund (MUTF:GIFMX) seeks exposure to several asset classes that usually include the markets, the bond markets, interest rates, commodities and currencies. It has returned over 18% in the last three months and over 14% in the last three years. GIFMX has over $260 million in total assets. As of the end of February, the fund's top two holdings were: the 2-Year Treasury Note Future expiring on June 22 and the S&P TSX Capped Information Technology Index Future expiring on Mar. 22.
The LoCorr Market Trend Fund (MUTF:LOTAX) uses market trend and fixed income strategies to achieve its primary objective of capital appreciation. It has returned over 21% in the last three months and over 13% in the last three years. LOTAX has over $400 million in total assets. As of the end of February, the fund's top three holdings were: the Euro Bobl Future expiring on Mar. 22, the U.S. Treasury Bond Future expiring on Mar. 22, and the 5-Year Treasury Note Future expiring on Mar. 22.
The AXS Chesapeake Strategy Fund (MUTF:ECHAX) invests in a combination of an actively managed fixed-income portfolio comprised of cash, cash equivalents, and securities issued by the U.S. government and a diversified portfolio of futures contracts and futures-related instruments. It has returned almost 14% in the last three months and almost 10% in the last three years. ECHAX has over $33 million in total assets. As of the end of February, the fund's top two holdings were: the Fidelity® Inv MM Fds Government I and the Axs Chesapeake Strategy Fund Ltd.
The LoCorr Long/Short Commodity Strategies Fund (MUTF:LCSAX) aims to achieve its investment objective of capital appreciation by allocating its assets using two principal strategies: commodities and fixed income. It has returned over 5% in the last three months and almost 8% in the last three years. LCSAX has over $1 billion in total assets. As of the end of February, the fund's top three holdings were: the Lclscs Fund Limited, the Invesco Shrt-Trm Inv Gov&Agcy Instl and United States Treasury Notes 0.38%.
The AQR Managed Futures Strategy HV Fund (MUTF:QMHIX) works to achieve its investment objective of positive absolute returns by allocating its assets among four major asset classes: currencies, fixed income, commodities and equities. It returned almost 28% in the last three months and almost 8% in the last three years. QMHIX has over $92 million in total assets. As of the end of February, the fund's top two holdings were: the UBS Relationship Fds and United States Treasury Bills 0%.
The PIMCO TRENDS Managed Futures Strategy Fund (MUTF:PQTAX) uses a quantitative trading strategy to capture the persistence of price trends in the global financial markets and commodities. It has returned over 9% in the last three months and almost 12% in the last three years. PQTAX has over $2.7 billion in total assets. As of the end of February, the fund's top two holdings were: the Pimco Cayman Commodity Fund Viii Ltd. and United States Treasury Bills 0%.
The Altegris Futures Evolution Strategy Fund (MUTF:EVOAX) allocates its assets between managed futures fixed-income strategies. It has returned over 15% in the last three months and almost 5% in the last three years. EVOAX has over $150 million in total assets. As of the end of February, the fund's top three holdings were: the DoubleLine Low Duration Bond I, Nomura Call Options expiring on 08/16/2023 Isam Shares, and Nomura Call Options expiring on 08/16/2023 Wntn Shares.
The Arrow Managed Futures Strategy Fund (MUTF:MFTFX) uses a fixed-income strategy and a managed-futures strategy to achieve its investment objective. It has returned almost 33% in the last three months and more than 11% in the last three years. MFTFX has over $138 million in total assets. As of the end of February, the fund's top three holdings were: the Dunn Commodities Man, the Arrow Reserve Capital Management ETF and the Arrow Managed Futures Trend Fund Ltd.
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