Strategic Heat Map by Kettera - November 2020 Edition
News Article: Analysis of Long-Short Equities Sector Strategies in November 2025
In the financial world, November 2025 saw a flurry of activity as managers adjusted their portfolios, with many selling US dollars to purchase 'risk on' currencies like the South African rand and Brazilian real. While direct data on the performance of long-short equities sector strategies is limited, insights can be gleaned from available information.
Macro Strategies
Discretionary macro managers and model-based macro strategies may have benefited from the economic context. Anticipated Fed rate cuts and global central bank easing could have created opportunities for strategies sensitive to these factors, according to Nuveen.
Short-term trend programs and AI/Machine Learning programs, while lacking explicit performance data, could have found favour in navigating market volatility and geopolitical uncertainty, as suggested by BlackRock.
Fixed Income vs. Equities
Fixed income markets, particularly senior loans and high yield municipal bonds, showed resilience and yield attractiveness. Equities, on the other hand, continued to show gains but with increased volatility and policy risk.
Performance Highlights
The long-short equities sector posted one of its best months in recent memory, with profits from the long side and exploitation of selloffs in 'Covid friendly' stocks. Short-term and higher frequency traders also saw varying returns, with positive performers having intraday- to 2-3 day holding periods.
In the category of AI/Machine Learning programs, many outperformers capitalized on long equities and short fixed income positions. Most systematic trend programs were positive for the month, largely thanks to long equities positions and long industrial commodities.
Notable Trends
Many discretionary macro managers had enormously wide returns, with long equities being a common theme among the most profitable. Conversely, long-term systems faced setbacks among some veteran trend followers, due to still being short equities indices and short industrial commodities coming into the month and the US Election.
November also saw a rebound for 'pandemic loser' stocks, particularly in energy and financials. The BarclayHedge Currency Traders Index, BTOP FX Traders Index, Barclay Crypto Traders Index, Eurekahedge Long Short Equities Hedge Fund Index, and Eurekahedge AI Hedge Fund Index were all mentioned in relation to November's market activities.
For precise November 2025 performance statistics on these specific investment strategies, dedicated hedge fund or asset manager reports or sector-specific analytics would be required. The CBOE Eurekahedge Relative Value Volatility Hedge Fund Index, Eurekahedge-Mizuho Multi-Strategy Index, and S&P GSCI Metals & Energy Index and S&P GSCI Ag Commodities Index were also referenced in the documents but do not provide specific November data for the long-short equities sector.
Technology played a crucial role in assisting institutional investors with their investing decisions, as AI/Machine Learning programs, such as those offered by BlackRock, were suggested to have navigated market volatility and geopolitical uncertainty effectively. On the other hand, some systematic trends in finance, specifically long-short equities sector strategies, observed substantial gains and profits by leveraging advanced algorithms for intraday trades.
