Trend followers have long sought to expand into new markets offering differentiated, idiosyncratic return drivers. Within equities, cash equities offer an opportunity to do precisely this, opening the door to trends inaccessible through index futures alone

Not all cash equity approaches are equal, however. Historically, directional sector trend following has generated positive absolute returns, but remained correlated to equity index futures trend, particularly in the tails

We believe cross-sectional strategies, applied to sectors and equity styles, can offer more diversifying characteristics and serve as an effective complement to traditional trend following

Read | A Trend Following Deep Dive

Man Group

London-based Man Group is a technology-empowered active investor across equity, credit, commodities and currency markets, with a firm focus on delivering performance and client portfolio solutions.

Information provided is general information and is for educational purposes only, and does not include, or constitute as, financial product advice.