Sun, May 24, 2015
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. 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