Trend Funds Post Double-Digit Gains in 2026 on Commodity Trends, But Are Cutting Energy Exposure as Oil Momentum Slows

Quantitative trend-following hedge funds have recorded double-digit gains in 2026 after establishing long positions in energy futures early in the year. com. Energy commodities produced the largest share of those returns after the Middle East conflict began in February 2026.

Com. Roughly one-third of Metori Capital Management’s performance this year has come from energy trades, said Nicolas Gaussel, CEO and CIO of the Paris-based firm. com.

Kung noted that CTAs were generally losing money on energy exposure through February 2026, so the year-to-date attribution reflects a gain since March that is roughly 250 percent the size of the earlier loss. The SG CTA Index itself advanced more than 20 percent in 2022.

CTAs also captured early-2026 rallies in precious metals, mainly silver and gold, before shifting into industrial metals expected to benefit from AI infrastructure spending and supply constraints linked to the Iran conflict, Kung said.

Com. Long positioning across energy markets has since been reduced in response to higher volatility and choppier price action, Doody said. CTAs remain typically long energy but less exposed than earlier in the year.

Tom Wrobel, director of capital consulting at Societe Generale prime services, said oil gains form only one part of a broader set of trends supporting returns. Fixed-income markets have been more difficult, with CTAs on balance short fixed income as yields have risen amid inflation concerns, Doody said. com reported.