Thu, Apr 26, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Can short-term CTAs survive investor's preference toward long-term strategies?

Friday, November 09, 2012

Bailey McCann, Opalesque New York:

Short-term CTA strategies are somewhat new, having only really caught on within the last five years, but can they survive the market? Many of the institutional asset flows favor bigger, slower, longer-term CTAs, putting a pinch on these emergent funds. Participants in our recent Opalesque Managed Futures Roundtable note that there are more differences between short and long term CTAs, however, than just time horizon.

2009 was a banner year for short-term CTAs, spurred by improvements in electronic trading technology and positive market conditions. The returns from short-term CTAs drew significant investor inflows through the first quarter of 2009, according to roundtable participants. But after 2009, the market changed, making it much more difficult for short-term CTAs and raising questions about the staying power of the approach.

"The short answer is that they did not perform very well for three years, and the assets followed suit, exiting those strategies," explains Grant Jaffarian, of Efficient Capital Management. While assets are still coming into short-term CTAs, they are arriving at a decreased rate and the spread between short and long term CTAs has widened. As a result, it can be more difficult for smaller short-term CTAs to last and attract assets. As Opalesque ......................

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. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its