Saturday, 27 December 2014
Last updated 3 days ago
Oct 2 2013 | 10:29am ET
Three straight down years appears to be the limit for some commodity-trading adviser investors.
The $330 billion strategy suffered its first outflow in five years in the first half, with investors pulling $1.33 billion, according to BarclayHedge and Newedge Group. Hedge Fund Research estimates that CTAs were hit with more than $1 billion in the second quarter alone.
The redemptions come as CTAs, which posted huge gains during the financial crisis, are on track to post losses for the third year in a row. The poor performance is taking its toll on some of the biggest names in the industry, including Man's AHL, whose assets have fallen by more than half. Cantab Capital Partners and Winton Capital Management have also suffered redemptions.
The strategy's Sharpe ratio has also plummeted by more than 90%, and its negative correlation to the broader markets has evaporated.
"CTAs are going to have a hell of a job convincing investors they fulfull a viable role," one prime broker told Reuters.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.