Tuesday, 2 September 2014
Last updated 4 hours 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.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...