Trend-following funds are starting 2026 with fresh momentum, outperforming both stocks and bonds after a year of false starts. These quantitative strategies, which bet on sustained market moves, have capitalized on recent volatility. Their performance marks a sharp reversal from the struggles they faced throughout 2025.

This resurgence comes as market whiplash tests the models behind these funds. After a turbulent 2025, where rapid shifts in direction tripped up many systematic strategies, the current environment appears more favorable. Investors are watching closely to see if this marks a durable shift or just another fleeting rally.

The outperformance has drawn renewed attention to managed futures and systematic macro funds. While past years saw these strategies lag, their ability to profit from both rising and falling trends remains a key draw. The next test will be whether they can sustain gains if market volatility subsides.