Our weekly newsletter is out, and we’re examining some of the Emerging Managers on our CTA rankings. You see, picking a CTA from amongst the thousands of available managed futures programs can be a daunting task, and it’s why we created the Attain Capital Managed Futures Rankings. Our proprietary algorithm gives a single snapshot of hundreds of CTAs by ranking them on a scale of 1-5 flags. While it’s no substitute for due diligence and a careful evaluation of an investor’s goals and expectations, we believe it is an excellent starting point. Of course, no methodology comes without its quirks, and close watchers of our rankings list may have noticed that, on occasion, programs will suddenly “pop” onto the rankings. One day they aren’t on the list, and the next day they appear – sometimes with a 4 or 5-flag ranking.
It’s no mistake, and it isn’t that these CTAs are suddenly transforming into the best of the best at the stroke of midnight. It’s actually a consequence of the way that we filter the programs that are out there. You see, before we ever get into the nitty-gritty of comparing stats such as downside deviation and 3 year compound returns, we narrow the field with one simple rule – a CTA must have at least a 36 month track record before it is eligible for inclusion.
So when an up-and-coming manager hits their 3rd birthday, so to speak, we include them in our rankings universe and calculate a ranking for them. But just finding out about a program the day it hits its third anniversary wouldn’t do our clients any good, so we take a closer look at their record and trading style prior to hitting the rankings.
What we find when looking into these emerging managers is a classic risk/reward dilemma. On the one hand, their early success could be a fluke – they may not yet have proven themselves by performing well under a diverse array of market conditions. But on the other hand, these young programs could represent an opportunity to invest with the next great CTA before they make it big. Only time will tell how successful the programs which have recently jumped onto our rankings will be, but we wanted to share some quick profiles of three of the higher ranked ones: Stenger, Protec, and Global Sigma. Click on to read more.
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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