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From Kirsten Bischoff, Opalesque New York:
This week, California-based Welton Investment Corporation posted 2010 returns of +18.31% for its flagship Global Directional Portfolio (GDP) managed futures program. Launched in 2004, the $550m program's annualized returns since inception are +14.34% and experienced only one down year (2009 with -5.57%).
As an industry, CTAs by and large did not have a remarkable 2010, notching only +6.34% (Barclay CTA Index). The strategy performed extremely well during the one-sided market movement of 2008 (+14.09%), struggled with 2009's "trendless" market (-0.10%), and in the years leading up to the financial crisis, generally trailed equity indices.
A portfolio diversifier with its non-correlation to equity markets, managed futures have kept the attention of their core investors, but few managers have notched the outperformance to signify that they're non-correlated to other CTAs. It is a challenge for investors to find CTAs that provide diversification within their managed futures portfolio exposure (See previous Opalesque article: Investors struggle with building CTA portfolios that do not correlate to trend followers).
However, Welton has outpaced its peers consistently (+25.31 in 2008, +11.00% in 2007, and +15.21 in 2006). The GDP program...................... To view our full article Click here
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