It’s been a while since Chicago has been able to brag about first place. 3 years now for the Blackhawks, 8 for the White Sox, 15 years since Jordan and the Bulls, 28 years since Ditka coached a Bears champ, and as is well-reported and lamented – 105 years for the Cubs. So when a recent piece by All About Alpha (and the Balter Capital Management Hedge Fund Regional Performance Study) broke down hedge fund performance by major US city, we were thrilled to see our own Chicago come out on top. If we can’t have championship rings, we’ll take top-performing city:
Chicago was the best performing of the cities for the aggregate of that 12-year period, Boston second. Early in the period, and indeed until as late as 2007, Boston was either ahead of Chicago or effectively tied with it. The worst performing were: San Francisco, Los Angeles, and Greenwich….
Chicago also has the highest correlation with the Barclays Aggregate Index and the Barclays U.S. Treasury Index. This is intuitive: Chicago has a high concentration of commodity trading advisors. Chicago also has the highest correlation with global macro and CTA strategies as measured by the HFRI Macro and Barclays CTA indices respectively.
Head on over to see the whole story, along with a great table looking at the performance of all 7 cities for the last 1, 3, 5, 10, and 12 years. Of course, we definitely appreciate the author’s nod to managed futures as a source of Chicago’s strength, and couldn’t agree more. Over the long term, we think the ability to prosper during tough economic times like the Internet bubble or the financial crisis is going to help keep Chicago near the top of that list (Disclaimer: past performance is not necessarily indicative of future results) – unless of course all these smart commodity traders realize it is damned cold here in the winter and head for warmer pastures.
We can’t sniff the Super Bowl right now, but we’ll take this record any day.
The performance data displayed herein is compiled from various sources, including BarclayHedge, RCM's own estimates of performance based on account managed by advisors on its books, 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.
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