Managed Futures Spotlight: Covenant Capital Management

Our weekly newsletter is up, and we’re taking a look at a manager that has continued to impress as time has gone on. It has been nearly two years since we first profiled Covenant Capital Management in March of 2010. At the time, Covenant Capital Aggressive Program was, in our opinion, an up and coming trend following program that had just completed their sixth year of trading and were ready to make a splash in the managed futures space.

Over the last 18 months, Covenant Capital has grown rapidly with assets climbing to $496 million under management- approximately, 2.5 times higher than they were when we first met them in 2009. The Covenant Aggressive program, which has been a favorite of Attain clients, has grown even more rapidly to $85 million (from $5mm) since we first met with program manager Scot Billington in our office in late 2009. Of course, success has a price, and for those interested in the Covenant program it comes in the form or rising minimum investment levels. Officially, the minimum investment for the Covenant Aggressive program has been raised to $3mm, which is a steep increase from the current $250k investment level. However, the good news is that there is still time for Attain clients to get involved at more moderate minimums ($500,000+), and we suggest that anyone who has been interested in Covenant Capital in the past take a close look now before the program is officially at $3mm.

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  1. I think it is a little misleading not to mention that $360 millions of covenant capital aum is parked in their LONG only commodity program. Which I suspect is somewhat different from the advertised long short program you are describing above.

  2. As you get further into the piece, we clarify what the breakdown is for the Aggressive program. If you have any further questions, please don’t hesitate to email us.

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