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B. G., Opalesque Geneva:

In a recent report, Tim Pickering, CIO and founder of Auspice Capital Advisors, a Canadian CTA, and Brenan Basnicki, partner, make a case for investing in CTA vehicles.

Commodity Trading Advisors (CTAs) mainly employ rules-based (systematic) trend-following strategies on commodity and financial futures, they explain. The terms 'managed futures' (the asset class), 'trend-following' (a strategy), and 'CTA' (a professional registration), are often used as over 90% of CTA assets are invested in systematic strategies in which a majority of the risk is in price-based trend-following.

Trend-following CTAs have an extensive history as some track records date back to the early 1970s. The BTOP50 index is an index of the largest 21 CTA funds and has live performance dating back to 1987.

1. The first reason to invest in CTAs is that institutional investors already recognise their value. "Sovereign wealth plans and pensions have used CTAs for decades. Recently many pensions have moved away from traditional hedge fund portfolios and created more specific "Risk Mitigation" and "Cris......................

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