Tue, May 3, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Preqin reports fifth consecutive month of negative performance for CTAs

Friday, November 01, 2013

Beverly Chandler, Opalesque London:

A fifth consecutive month finds CTA performance in the red with average net returns of -0.67% in September, compared with 1.74% for all single-manager hedge funds, according to Preqin’s Hedge Fund Analyst database.

The firm reveals that the CTA strategy’s year-to-date performance is a loss of -2.45%, while over the last 12 months, CTAs have produced average net returns of -3.77%.

Highlights from the Preqin report find that:

  • CTAs continue to represent an important hedging tool for investors due to their lack of correlation with other markets; over 990 investors tracked by Preqin’s Hedge Fund Investor Profiles* database have previously allocated to, or stated a preference for investing in CTAs.
  • However, there has been a reduction in appetite for new CTA investments. In Q3 2013, 9% of investors planning new hedge fund investments over the next 12 months were considering CTA investments, compared 18% in Q4 2012.
  • The three-year volatility of CTAs from October 2010 to September 2013 was between 6% and 8%, while for the S&P 500 it was 12% to 22%.
  • 31% of public pension funds and 25% of insurance companies that invest in hedge funds have a preference for CTAs, with these investors typically taking a long-term approach to investing in hedge funds, and viewing CTAs as offering good downside protection.
  • 38% of hedge fund investors based in Europe and 36 % based in A......................

    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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n