Wed, Aug 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Preqin: Institutional investors active in CTA funds have more than doubled since 2008

Friday, November 09, 2012
Opalesque Industry Update - There are now 713 global institutional investors with an active CTA portfolio, a significant increase on 2011, when the number stood at 504, and 2008, when just 331 had CTA funds in their holdings.

Preqin has conducted in-depth analysis of the CTA industry using its market leading Hedge Fund Investor Profiles database and newly launched Hedge Fund Analyst product.

Other Key Facts:

 42% of funds of funds invest in CTAs. Public pension funds also show a strong appetite for CTA vehicles, with 25% having a preference for such funds.
 1,298 funds pursue a managed futures theme, with 62% managed from North America, 32% from Europe and 6% from Asia and Rest of World.
 The largest number of CTA launches was noted in 2011. 165 managed futures programs tracked by Preqin were launched last year. Spikes in CTA launches tend to follow years of positive performance for the industry, with large increases witnessed in 2004 (after producing returns of 27.19% in 2003) and 2009 (after posting returns of 19.11% in 2008).
 CTAs have returned 2.00% YTD and 0.35% annualized over the last 12 months compared to 6.32% and 8.02% respectively for the wider hedge fund industry.
 Despite muted performance over the past couple of years, CTAs have proven themselves strong performers over longer time frames (posting returns of 8.98% annualized over five years compared to 6.35% returned annually by hedge funds over the same time frame).
 CTA returns also exhibit neutral or negative correlation to equity market returns, as monitored by the S&P 500, and have proven to be good sources of “crisis alpha” in periods where both hedge funds and the wider equity markets are performing negatively.

For more information, please see the full report: www.preqin.com/docs/newsletters/HF/Hedge_Fund_Spotlight_November_2012.pdf

Comment: “CTA/managed futures have often been regarded as an “all-weather” investment choice, with historical performance characteristics that make the strategy highly relevant during periods of relatively low returns and generally rising asset class correlations. Year on year, more investors are adding CTAs to their portfolios of alternative asset funds in order to tap into this diversified liquid source of alpha. Correspondingly, more managed futures vehicles are being launched in order to cater to the growing interest in the strategy. Despite recent disappointing performance by CTA vehicles, investor interest in the strategy continues unabated with 14% of fund searches initiated in October 2012 including a managed future mandate.” Amy Bensted, Head of Hedge Fund Products

Press release


Among Opalesque's research publications, the Opalesque Futures Intelligence (OFI) reports are published every month. You can subscribe to OFI here: www.opalesque.com/Futures-Intelligence.html.

Our recent Opalesque Managed Futures Roundtable can be found here:Source.

Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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 – Hedge funds feasting on Apple again, Top U.S. hedge funds up Walgreen shares; lose some taste for Apple, A look at how some of the top investors, hedge funds spent the second quarter, Blockbuster movies fuel big wins for hedge fund investors, Top hedge funds flock into Allergan amid bid backed by Ackman, Soros Fund Management exits stake in some tech companies, Jana buys FMC stake, adds to AIG, exits Sirius in quarter[more]

    Hedge funds feasting on Apple again From Forbes.com: Robert Citrone and Phillippe Laffont are two of the most prominent Tiger Cubs, hedge fund managers who once worked for legendary money man Julian Robertson’s Tiger Management. Both of them had a rough start to 2014 and sold the bulk of

  2. Legal – Pershing Square sues U.S. over Fannie Mae and Freddie Mac, Elan investors sue SAC over insider-trading losses, Lawsuit loss by hedge fund is just a cost of doing business[more]

    Pershing Square sues U.S. over Fannie Mae and Freddie Mac From WSJ.com: William Ackman's Pershing Square Capital Management LP, which has taken sizable stakes in the common shares of Fannie Mae and Freddie Mac, filed a lawsuit Thursday against the U.S. government challenging its bailout

  3. Private equity follows hedge funds into reinsurance for long-term capital[more]

    From Artemis.bm: It’s not just hedge funds that are entering the insurance and reinsurance market in search of so-called long-term capital to put to work in their strategies, private equity firms targeting the space are also seeking opportunities to add assets under management. The entry of large pr

  4. North America – New York City’s next hot neighborhoods targeted with property funds[more]

    From Bloomberg.com: New York’s real estate world is filled with tales of ordinary people who bought property decades ago and saw values skyrocket to the millions. Seth Weissman is seeking investors to get in early on the next hot neighborhoods. The veteran of Goldman Sachs Group Inc. and hedge

  5. Investing – George Soros bets $2bn on stock market collapse, Warren Buffett's Berkshire reveals Charter stake, cuts DirecTV, Hedge funds lusting to cash out of MGM, Top hedge fund managers are buying Ally Financial, Hedge funds dumped 5m Herbalife shares in Q2, Paulson & Co hedge fund ups Puerto Rico real estate bet, Netflix Inc., Citigroup Inc, Google Inc are top new picks in Tiger Management’s 13F[more]

    George Soros bets $2bn on stock market collapse From Newsmax.com: Billionaire investor George Soros has increased his financial bet that U.S. stocks will collapse to more than $2 billion. The legendary hedge fund manager has been raising his negative bet on the Standard & Poor's 500 Inde