Man, were we excited to pick up Annie Duke’s book on game theory and how she approaches life (and poker) by thinking in bets. Thinking in Bets: Making Smarter Decisions When You Don’t Have All the Facts After all, that’s what a good alternative investment strategy does. It “thinks” in terms of an asymmetric […]
While everyone is talking about the risks in China, with them ratcheting up stakes in the trade war with a Yuan devaluation, and threatening troops in Hong Kong to squash protests, many in the quant space are busy analyzing the Chinese markets for investment opportunities. Now, we’re not talking about picking the next Tencent IPO […]
Bridgewater & Associates is commonly known as the world’s largest hedge fund, with more than $140 Billion in assets under management and close to 1,500 employees. Its founder Ray Dalio is about as eccentric as you would expect from the founder of the world’s largest hedge fund – penning his own manifesto, and installing a […]
For as long as anyone can remember, the classic hedge fund fee structure has been two and twenty. Or more formally, a 2% annual management fee and a 20% performance fee. The management fee is to allow for the manager to operate their business, invest in technology, and pay their quants. The performance fee is […]
Think not…? Then email firstname.lastname@example.org and let the SEC know. For those of you who don’t remember Jon Corzine, he’s the ex-Goldman senior partner-turned US Senator-turned New Jersey Governor-turned CEO of futures clearing firm MF Global. Just one little problem with this story…as the picture below alludes to, his tenure at MF Global saw him […]
Managed futures, commodity trading, forex trading, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. You should not rely on any of the information as a substitute for the exercise of your own skill and judgment in making such a decision on the appropriateness of such investments.
The entries on this blog are intended to further subscribers understanding, education, and – at times – enjoyment of the world of alternative investments. Unless distinctly noted otherwise, the data and graphs included herein are intended to be mere examples and exhibits of the topic discussed, are for educational and illustrative purposes only, and do not represent trading in actual accounts. Opinions expressed are that of the author.
The mention of specific asset class performance (i.e. +3.2%, -4.6%) is based on the noted source index (i.e. Newedge CTA Index, S&P 500 Index, etc.), and investors should take care to understand that any 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.
The performance data for various Commodity Trading Advisor (“CTA”) and Commodity Pools are compiled from various sources, including Barclay Hedge, 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.
The mention of general asset class performance (i.e. managed futures did well, stocks were down, bonds were up) is based on RCM’s direct experience in those asset classes, estimates of performance of dozens of CTAs followed by RCM, and averaging of various indices designed to track said asset classes.
The mention of market based performance (i.e. Corn was up 5% today) reflects all available information as of the time and date of the publication.
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Managed Futures Disclaimer:
Past Performance is Not Necessarily Indicative of Future Results. The regulations of the CFTC require that prospective clients of a managed futures program (CTA) receive a disclosure document when they are solicited to enter into an agreement whereby the CTA will direct or guide the client’s commodity interest trading and that certain risk factors be highlighted. The disclosure document contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA.