Mama Said Knock You Out

For those of you who weren’t rocking to LL Cool J in 1995, his ‘comeback’ song famously begins with the line, “Don’t Call it a Comeback.”

Well, we bet Emil Van Essen, the quirky (in a good way) Canadian who runs the self named Emil Van Essen managed futures shop here in Chicago, may have been humming that first line (if not the entire song) throughout the month of July. You see, Van Essen managed to post estimated returns of 6.00% in July, his best month since May of 2011, a year the program returned 33.99%. Since that blowout year, it has been more of a struggle for Emil and his team, however; with losses of  -11.63% in 2012, -6.60% in 2013, and a weak first quarter of this year, down about -3.9% {past performance is not necessarily indicative of future results}.

Anyone falling for the trap of chasing performance likely wouldn’t be looking at Van Essen at all in 2014 given the past three years. Josh Brown at Reformed Broker just had a great piece on how fired managers actually outperform hired managers for institutional investors. But for those who like buying into drawdowns and looking for some value, Van Essen’s unique strategy is quite attractive after they put in a postive 2nd quarter followed by the impressive July numbers.  In deference to the song… it is a bit of a “comeback.”

The Van Essen strategy takes long and short positions on the futures  “curve”.  What’s a price “curve”?  Glad you asked. You see, futures markets are unique animals, quite different from their stock cousins. One unique item is that they have specific end dates and many different contracts of the same market; like Dec. ‘14 Crude Oil, Dec. ‘15 Crude Oil, and Dec. ‘16 Crude Oil and so forth. Those prices are either more expensive or cheaper than each other, creating a “curve” of prices; referred to as Backwardation and Contango depending on the shape.

Historically, crude oil has been the fund’s go to market so to speak, and the strategy profited from near term crude oil prices falling throughout the month as production levels rose domestically and abroad. But the bulk of gains in July was from trading lean hogs as near term hog prices fell much quicker than those in the back month, a classic relative value trade. Finally, coffee was another top performer as well with the further out months falling at a quicker pace. All in all it was a good month to be looking for (relative) value opportunities in commodities.

For more on the Emil Van Essen program as utilized by Attain’s Relative Value Fund, download our detailed report.

P.S — You might also enjoy the following video interview of Emil.

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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.