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From Sagar Chakraverty, Opalesque Asia:

“The only style among all the alternative classes that made money in 2008 was CTAs… there is not one equity manager on the planet that would have had a ratio making six times more in 2009 than they lost in 2008.”

Craig Caudle, the CEO and principal of U.S.-based Liberty Funds Group, a CTA which advises on approximately $100m in assets, also said at the most recent Opalesque Roundtable in Texas that commodity trading advisors (CTAs) offer diversification when all other asset classes are moving in similar directions.

He added, “The only way we can survive is to continue to develop strategies that can make money in growing economies as well as contracting economies. We get hired and fired based on absolute return.”

Managed future traders or CTAs are firms registered with the Commodity Futures Trading Commission (CFTC); they advise on options, futures and the actual trading of managed futures accounts. Of the total $1.8bn hedge fund industry, CTAs manage about $220bn.

The Barclay CTA Index was up 0.42% in April but down 0.05% YTD (as of 16-May). The Agricultural Traders Index was the biggest losers in April, down 1.11%. In 2008, the CTA index was up 14.09%, and in 2009 down 0.1%.

Similarly, the Eurekahedge CTA/Managed Futures Index was up 18.08% i......................

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