Weekend Reads: Under-Allocated to CTAs

I think people are under-allocated to CTAs. It’s a good way of getting the (risk mitigating) medicine to the patient . . . But investors are return chasers and last year was not a good year,” he says.

Trend-following funds need to find their footing in 2017 – (FT)

 

In the decade after Ed thorp launched Princeton Newport Partners, the fund gained 409%, annualizing at 17.7% before fees and 14.1% after. Not bad for a market neutral portfolio. Over the same period, the S&P 500 annualized at just 4.6%, including dividends.

Firearms Versus Bow and Arrows – (The Irrelevant Investor)  

 

The problem isn’t that these mutual funds are inherently bad.

The Hidden Fees Inside Managed-Future Funds – (The Wall Street Journal)

 

Managed futures provide valuable diversification; it’s one of the few strategies with consistently low correlation to other asset class.

It’s Time to Clean Up Managed Futures Mutual Funds – (Wealth Management)

 

Managed Futures 2016 Strategy Review – (RCM’s Attain Alternatives Blog)

 

Although stock pickers are cutting fees, the trend towards ETFs and passive investing quickened in 2016

ETFs are eating the US stock market – (FT)

 

The good news is that a globally diversified portfolio can mitigate many of these risks.

Deep Risk Under President Trump – (A Wealth of Common Sense)

 

The activity Deutsche Bank engaged in that resulted in over $600 million of fines was borne out of the bank’s desire to move $10 billion out of Russia — in what one regulator said were transactions “highly suggestive of financial crime.”

Here’s why Deutsche Bank was fined $628 million over Russian trades – (Market Watch)

 

The rule, promulgated by the Department of Labor and set to take effect in April, requires brokers selling retirement investments to put the client’s interests ahead of their own. It’s designed largely to protect consumers enrolled in qualified retirement plans and individual retirement accounts (IRAs.)

Trump to order regulatory rollback Friday for finance industry starting with Dodd-Frank – (Washington Post)

 

America’s score, which went from 8.05 to 7.98, is now below the threshold for a full democracy (8.0). The index is based on five categories: electoral process and pluralism, civil liberties, the functioning of government, political participation, and political culture.

America is no longer a ‘full democracy’ according to the Democracy Index – (SF Gate)

 

Substantial declines in state support, driven by contractions in state budgets, have occurred at public sector universities. For such universities, declines in state appropriations force a choice between increasing tuition levels, cutting expenditures, or enrolling a greater proportion of students paying full out-of-state tuition

A Passage to America: University Funding and International Students – (NBER)

 

 

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.

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