Sun, Apr 26, 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. U.S. does not want hedge funds to invest in offshore re-insurers for tax purposes[more]

    Komfie Manalo, Opalesque Asia: The U.S. Treasury Department on Thursday introduced a new rule aimed at limiting hedge funds’ ability to reduce their tax bills by investing in insurance companies in offshore tax havens. As a general rule, the U.S. tax laws does not allow hedge funds to use off

  2. Ruling: Hedge funds suing Argentina can have access to bond offering details[more]

    Komfie Manalo, Opalesque Asia: U.S. District Judge Thomas Griesa in Manhattan ruled yesterday that hedge funds are entitled to details of a recent bond offering by Buenos Aires, reports

  3. Fund managers express concern of overvaluation in both equity and bond markets[more]

    Komfie Manalo, Opalesque Asia: According to the BofA Merrill Lynch Fund Manager Survey, investors see growing overvaluations in both

  4. Update: Wall Street has strong feelings about Jon Corzine trying to make a comeback[more]

    From Businessinsider.com.au: Former New Jersey Governor Jon Corzine is thinking about starting his own hedge fund, according to the Wall Street Journal, and because of the way his last firm imploded, Wall Street has strong feelings about that. “Truth is the larger seeders would never give him money

  5. Opalesque Exclusive: Cybersecurity and hedge funds - A manager’s experience, Part Four[more]

    Benedicte Gravrand, Opalesque Geneva: Ruane, Cunniff and Goldfarb, Inc. used to have their own IT infrastructure. Todd Ruoff, Executive Vice President in charge of trading, operations and technology, was responsible for its maintenance. Then he started looking at outsourced providers a couple of

 

banner