Fri, Mar 6, 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. SkyBridge opens office in Palm Beach County[more]

    Where better for a southern location than South Florida? SkyBridge Capital, which is headquartered in New York, has opened an office in Palm Beach Gardens. Palm Beach Gardens is a "Signature City" in northern Palm Beach County, with a population of around 49,000.

  2. Outlook - Philippe Jordan predicts 'alternative beta' to displace hedge funds, Stan Druckenmiller says Europe, Japan stocks will outpace U.S.[more]

    Philippe Jordan predicts 'alternative beta' to displace hedge funds From Investordaily.com.au: The disappointing performance of hedge funds in recent years is a result of "too much money chasing too little alpha", argues Capital Fund Management. Speaking to InvestorDaily, CFM partner Phi

  3. Investing - As rig count falls, hedge funds pile into long crude futures, Parus tactically shifts long/short exposure ratios, Mario Draghi outflanking Kuroda as bearish euro bets surge, Prime Capital’s 500.com bet derailed after 41% drop[more]

    As rig count falls, hedge funds pile into long crude futures From 247wallst.com: In the week ended February 27, the total number of rigs drilling for oil in the United States came in at 986, compared with 1,019 in the prior week and 1,430 a year ago. Including 281 other rigs mostly drill

  4. Outlook - 5 reasons why 2015 is looking like a breakout year for alternative investments, Hedge fund manager Dan Loeb predicts disappointment for funds seeking energy distress[more]

    5 reasons why 2015 is looking like a breakout year for alternative investments From Forbes.com: …After a strong 2014, the public markets have been off to a choppy start in 2015. This year, savvy investors may be looking for alpha elsewhere. For many institutions and high-net-worth indivi

  5. Event-driven strategies lead hedge fund gains in February while CTA rally shows signs of fatigue[more]

    Komfie Manalo, Opalesque Asia: Hedge funds ended February on a good note (+0.8%), confirming the positive momentum witnessed since the start of the year, reported Lyxor Asset Management in its Weekly Briefing. As of the end of February, the Lyxor He