Fri, May 22, 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. Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class[more]

    Top hedge fund managers talk about how easy their jobs have gotten From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more.

  2. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  3. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  4. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  5. New market regime has created more dispersion between managers[more]

    Komfie Manalo, Opalesque Asia: The month of April has marked the transition toward a new market regime, Philippe Ferreira, Lyxor AM’s head of research, managed account platform, commented in the May 5's Weekly Briefing. "The first quart

 

banner