Sun, Apr 22, 2018
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. 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