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From the Opalesque team:

"We traded over a quadrillion dollars last year," said Rick Redding, Managing Director at CME Group during the latest Opalesque Roundtable (Chicago) which was dedicated completely to the topic of Managed Futures. That number (which comes with 15 zeros) might be the best way to illustrate the extent by which the managed futures industry has grown due to developments in technology. "In many respects, the industry has become a technology business," commented Joseph Canepari, President, Rotella Capital Management during the Roundtable.

Evaluating a firm's technology driven "edge" Aside from strong performance, part of the reason managed futures achieved popularity after 2008, was because the CTA space is liquid and transparent. But even with higher levels of transparency than other strategies, evaluating a potential investment into a CTA requires being able to evaluate extremely large amounts of data.

While there is still a large and growing number of managers that use fundamental trading across many time frames, Redding cited growth in high frequency over the past five years as rising from 20% to 44%. This means investors into CTAs need to be able to evaluate a wide range of operation and execution evaluations when considering managers.

"The allocator is forced to have a level of expertise in appli......................

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