Tue, Jan 19, 2021
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Short term CTAs see improving climate ahead

Monday, June 25, 2012

amb
Peter Kambolin
Bailey McCann, Opalesque, New York:

Short-term CTAs are finding themselves well positioned for returns given current market conditions. A recent report from Citi Prime Finance shows that record allocations are flowing into CTA and macro strategies as investors seek returns that aren't solely tied to volatile equity markets. This is welcome news for short-term CTAs that have had a hard time finding returns in the last few quarters.

CTA assets under management rose 52% between the end of 2007 and 2011, according to Barclayhedge. The turning point for CTAs came in 2008, the Citi report says, when they outperformed other hedge fund strategies and long-only managers. This led many institutional investors to look at ways to diversify their portfolios to weather periods of market volatility.

However, many short-term CTAs had a hard time catching fire during much of last year. Now, as markets have more or less settled into high volatility and have priced in many negative events like the Eurozone crisis, short term CTAs are showing growing returns.

"The choppy environment we’ve been experiencing since August of 2011, with the increase in volatility, as measured by the VIX, has also been positive for our flagship trading strategy, which has generated positive returns in 7 of the last 9 months. Many indications are pointing to the curren......................

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. SPACs: The SPAC shareholder class action boom is coming, SPACs have a hidden risk that investors need to know about[more]

    The SPAC shareholder class action boom is coming From Reuters: I'm not the first to predict it, but the past few weeks have brought unmistakable signs that shareholder class action firms are homing in on Special Purpose Acquisition Companies, those so-called blank-check entities that g

  2. SPACs: Jeremy Grantham: "SPACs should be illegal", Spacs may fuel European IPO boom, SPAC IPOs surge, The SPAC pop is now a thing: More unicorns getting on board, Paysafe readies $9bn IPO Via SPAC[more]

    Jeremy Grantham: "SPACs should be illegal" Special-purpose acquisition companies (SPACs) should be illegal, according to Jeremy Grantham, as they escape regulatory oversight and encourage the "most obscene type of investing." Grantham is the co-founder and chief investment strategi

  3. News Briefs: What if data scientists had licenses like lawyers?, Next generation behind family offices' ESG push[more]

    What if data scientists had licenses like lawyers? From Bloomberg: Data scientists, if they're poorly qualified or act irresponsibly, can do at least as much damage as lawyers and doctors. The algorithms they create can ruin lives, aggravate social divisions, even facilitate genocide.

  4. SPACs: SPAC costs are 'far higher' than previously realized, study finds, Jim Cramer recommends profit taking in speculative electric SPAC names.[more]

    SPAC costs are 'far higher' than previously realized, study finds From Institutional Investor: The costs of going public via a special-purpose acquisition company are both "opaque and far higher" than previously recognized, new research shows. SPAC shares tend to drop by one third or

  5. Institutional Investors: Pensions swamped in a sea of negative real rates, Bahrain's pension fund authority faces collapse[more]

    Pensions swamped in a sea of negative real rates From FA Mag: Defined-benefit pension plans were already barely treading water heading into 2020. In the years ahead, the risk is as great as ever that a large swath of them will drown. As the name implies, defined-benefit pensions promis