Sat, Jan 31, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: CTAs: Where do we go from here?

Thursday, November 12, 2009

This commentary was written by Maximilian Thiel, senior manager at AIMhedge Management Ltd, a Liechstenstein and Caymans-based alternative management firm.

The firm's flagship, AIMhedge Global Diversified Fund Ltd, is a systematic hedge fund focused on delivering absolute returns by investing in financial and commodities futures. It returned +41.36% last year and -14.35% YTD (est., to 10-Nov-09), managing $73.6m and having annualised almost 12% over the last 5 years.

Systematic trend following Managed Future Funds (also known as Commodity Trading Advisors or CTAs), pursue the strategy of trend following in financial- and commodity markets. They are able to generate profits on falling and rising markets and were able to generate +1988% of return since 1980 making this approach one of the most profitable capital investments available. This year, however, CTAs have had difficulties generating returns raising the question "Is the current under performance temporary or have the financial markets changed such that trend following is no longer viable?"

Ideal market scenarios for the trend following strategy are characterized by clear trends in numerous markets. This was demonstrated in the financial crisis of 2008, where trend following CTAs posted large profits over a period where most other investments vehicles posted record losses. As with all strategies, however, there are market situations that are not suited to trend following and thi......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Ex-Citi trader launches 'sleep-at-night’ long/short equity fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: After working at Citi's proprietary trading desk, managing a large portfolio between 2008 and 2011, Joel S. Salomon founded SalaurMor Management in New Yor

  2. Investing - U.S. investors favor currency hedged Europe ETFs as euro tumbles, Quants win back investors as Swiss franc fuels volatility gains, David Einhorn's $7bn hedge fund is loading up on this stock, Hedge fund BlueMountain Capital unveils Ocwen Financial short, claims default on notes[more]

    U.S. investors favor currency hedged Europe ETFs as euro tumbles From Reuters.com: U.S. investors stung by the falling euro who want to stay invested in Europe are turning to exchange-traded funds designed to strip out the impact of the region's currency. The biggest among so-called "cur

  3. News Briefs - Millennials use tech tools to jump into investing, Winklevoss twins to launch bitcoin exchange with FDIC insured deposits, Robertson’s legacy from hedge funds to New Zealand, Real estate managers exploring smaller open-end funds[more]

    Millennials use tech tools to jump into investing It is the Facebookification of monetary investing. From social networking platforms that enable young investors to stick to every other's stock-picking mojo, to internet sites for initially-timers hungry for a piece of the Silicon Valley

  4. Update: Prosecutors seek 12 years for hedge fund manager Francisco Illarramendi[more]

    Komfie Manalo, Opalesque Asia: Federal prosecutors have asked the court to sentence convicted hedge fund manager Francisco Illarramendi to 12 years imprisonment for running an elaborate Ponzi scheme that bilked investors hundreds of millions in dollars, including a Venezuelan pension fund, report

  5. Institutions - Ontario pension fund leader calls all asset classes ‘expensive’, Taiwan's BLF plans $2bn in alternative mandates[more]

    Ontario pension fund leader calls all asset classes ‘expensive’ From WSJ.com: The head of one of the world’s largest pension funds said that across asset classes, “everything is expensive.” Ron Mock, who leads Canada’s $141 billion Ontario Teachers’ Pension Plan, said that the plan would