Managed Futures AUM Spikes Despite Performance

It’s been a rough year for managed futures; that’s certainly hard to argue against, with the predominant up trend across many markets in the beginning of the year reversing course in July, then that downtrend being reversed in October.  What’s encouraging on our end is that, despite negative performance, assets under management for the asset class continue to rise. That’s right- Barclay Hedge FINALLY updated its assets under management figures for Q3 of this year, and the results were pleasantly surprising.

Whether investors are getting smarter or scrambling to get in on something that did well during 2008 as they watch the stock market swing, there’s no way of knowing. Still, the 7% surge in AUM last quarter is pretty impressive, especially in a year where managed futures hasn’t been the best performing asset class. But before you go patting your friendly local managed futures proprietor on the back, congratulating him on being in a growing industry, consider that the lion’s share of this money is going to the biggest of the big managed futures programs.The following comes from Finalternatives:

David Harding’s London-based Winton Capital Management has been on the receiving end of more than a tenth of the money flowing into hedge funds in 2011, a year that saw a few managers dominate.

The $26 billion firm had added a net $7.3 billion to its assets under management as of October 31, reportsBloomberg, citing two investors who preferred not to be identified.

Winton is one of eight funds that accounted for a third of all new money poured into hedge funds this year, says, Bloomberg.

Ignoring for a second that the reporters lump Winton in with hedge funds, it is impressive/alarming (take your pick) that 14% of managed futures growth in 2011 has come from a single manager – Winton.  But if it means more recognition of the value of managed futures by the investing world as a whole, we’ll take it.


One comment

  1. Another issue that investors don’t get. One of the industry’s issues is that the skew in assets under managemt. It is heavily concentrated in a relatively small number of hands. Always has been. Can it ever be a really successful industry with such a large concentration of assets among so few firms.

    I don’t have the data but would the top 10 have more assets than the rest combined?

    Also would be interested in the growth in assets over the past few years, what % went to the top 10% of CTA’s by assets vs the other 90%.

    Certainly Winton is a star in the field and their huge amount of assets allows them to have an organization that meets institutional needs and concerns.

    However the dramatic increase in assets they are experience is certainly going to impact performance as time goes on. They are an extremely impressive group with top notch people but I still expect that growth in assets will lead to a decline in performance over time.

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Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.