CTA’s Think Positive for rest of 2013

Since we’re approaching the halfway point of 2013, we feel it might be nice to get a feel for the atmosphere surrounding managed futures. Enter, CTA Intelligence, a new digital magazine. Their most recent post is out, breaking down a CTA survey with some interesting stats confirming CTA’s thoughts on the direction of managed futures.

Source: CTA Intelligence

For you those of you political junkies out there, this chart brings memories of President Ronald Reagan asking a crowd of supporters, “Are you better off than you were four years ago?” While CTA’s are certainly not doing any better than 2009, almost 90% of the CTA’s surveyed expect to end 2013 better than 2012. So far there are numbers to back up their confidence (at least mild confidence). The Newedge CTA index was up 2.58% YTD through May, and the Barclay CTA Index was up 0.7%. (.7% is better than nothing right?)

So what strategy will overcome the rest to make the most returns for these CTA’s? They say medium or long term trends.

Source: CTA Intelligence

More than 43% believe they’re going to perform better with medium to long term trends, with short trends coming in a distant 2nd, and momentum and even further 3rd place. The percentages are prone to change as some mangers are contemplating changing over to short duration trading.

(If you’re following along, you’ll more than likely realize that the breakdown is probably the exact same as the percent of programs in each sector.)

Other items of note: the EU financial .01% Tax set to kick in starting in 2014.  Surprisingly enough, almost 60% think the EU financial tax is a non issue.

Source: CTA Intelligence

The rest is mostly about asset raising, which we bet most people outside of the industry don’t care all that much about (usually investors want to know how you’re going to increase their assets, not how you’re going to increase yours.) But there was one little nugget in there about managers willing to reduce fees in the right scenario:

Source: CTA Intelligence

Now, in our experience, the 78% percent “always” willing to reduce fees or “sometimes” willing to reduce fees, only do so when you will be the manager’s new largest (or among the largest) investors in their program. Or if they are newer or smaller. If expecting it from a highly ranked program with over $50 million under management – don’t hold your breath.

Write a Comment

Disclaimer
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.

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, 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.

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.