Strategy Background

Managed futures strategies, defined as systematic, trend-following funds managed by Commodity Trading Advisors (CTAs), have delivered compelling risk-adjusted returns in the alternatives investment strategy universe through the first half of 2026. The sustained directional moves due to the AI-driven equity rally, Middle East conflict, and stickier inflation have combined to deliver a diversified long/ short trading environment across asset classes. For comparison, a market with limited meaningful trends across asset classes and marked by consistent reversals is often a worse case scenario for the average medi

Market adjustments and yields: Fixed income markets have absorbed significant geopolitical and economic developments in recent months, particularly since the escalation of the Iran conflict. Treasury yields have risen sharply, reflecting a combination of higher growth expectations, elevated term premia, and a notable repricing of monetary policy.

Inflation and economic resilience: Yet this adjustment has occurred without a breakout in long-term inflation expectations or a collapse in economic data. This dynamic suggests that a substantial portion of potential bad news — higher-for-longer rates, persistent but contained infl

For weeks now, media reports have been suggesting that Washington and Tehran are moving closer to a memorandum of understanding (MOU). In practical terms, that would extend the current ceasefire by roughly 60 days and create a window to negotiate a more durable peace agreement. The market’s constructive read is straightforward: an MOU should allow flows through the Strait of Hormuz to stabilize quickly, if not normalize outright very soon.

We think that interpretation is a bit too linear. Even if an MOU is signed, it does not automatically translate into an immediate surge in oil supply. The more realistic near-term path is

With May behind us, we conducted a deep dive into exchange-traded fund (ETF) flows over the month and year-to-date (YTD) periods. Flows measure the net movement of cash into and out of investment vehicles, such as mutual funds and ETFs. We analyzed flows to gain insight on investor demand and sentiment surrounding asset classes, sectors, and other segments of markets.

Broad Asset Class Flows

Global markets in May continued a broad risk-on tone, with equities closing the month at record highs on resilient growth and strong artificial intelligence (AI)-driven earnings, despite ongoing geopolitical uncertainty and persistent in