Trend-Chasing Funds Struggle After Blowout Year

Trend-followers -- also known as managed-futures funds or CTAs, commodity trading advisers -- became investment darlings last year on the back of impressive performance. Funds in the sector were up 18% on average last year while hedge funds overall ended 2008 down more than 19%, according to data tracker Hedge Fund Research Inc.

They were able to ride the momentum of clear trends up or down in various markets, including the surge-and-drop of oil prices and the plunge in stocks.

This year, it is a different story. With a lack of clear trends, Ms. Braga and other trend-followers hit headwinds in recent months. The group was down 3% for the first six months of this year, even as hedge funds overall were up more than 9%, according to Hedge Fund Research.