The next round of Europe-induced anxiety is here, and this time the cause is… Cyprus? Whether the tiny country results in renewed financial turmoil or proves just another ripple, we found at least one other person with the same attitude as us: follow the trend, mind your risk management, and fasten your seat belt.
Category: Macro Commentary
19
Mar
2013
14
Mar
2013
Managed Futures and Stocks: Iceman and Maverick
The Dow is at new highs after roaring back from the 2009 low. Stacked up against managed futures over that time frame, it isn’t pretty… but when you take a wider view, a different picture emerges. Comparing the Dow’s swings to the Newedge CTA Index reminds us of the iconic pair from one of our favorite 80’s actions flicks – one might make for great Hollywood drama, but is that really how you want your portfolio to act?
13
Mar
2013
Not All Liquidity is Created Equal
Defenders of High Frequency Trading often argue that they are providing liquidity to markets, which is something we often hear about futures speculators like CTAs. But at least one veteran of the industry argues that not all liquidity is created equal, and that those HFT algos aren’t really providing the benefits that other market participants bring.
08
Mar
2013
The Gundlach Constant
Jeff Gundlach of Doubleline has been generating a fair bit of buzz lately by making huge – and for the most part, uncannily accurate – calls on various markets. But recently he was quoted explaining another catchy investing idea that sounds very similar to how we think of managed futures – something he calls Gundlach’s Rule of Investment Risk.
07
Mar
2013
5 Ways to Lose All of Your (AAPL) Money
Apple’s popularity over the last few years made it a huge part of many hedge funds, but one newsletter-writer-turned-managed based his entire strategy around the company… which ended about as well as you’d expect. It’s tempting to just shake our heads in pity and move on, but a closer read shows that many of the mistakes in this case are ones we see all the time with investors – even in managed futures.
28
Feb
2013
PFGBest Update: Insuring the Future
We have always thought that a SIPC-style insurance fund for segregated account holders was the single most important step needed to restore confidence in the industry. We need to make it clear that this is what the industry and those who use futures markets to invest want – need – in order to continue investing and trading with confidence. Please consider aiding the cause by taking a few minutes to answer the survey, and help us show just how important insurance is to the customers and businesses that make up this industry.
27
Feb
2013
PFGBest Update: The Remaining Pieces
It’s taken far longer than we would have liked, but the loose threads in the PFGBest fiasco are being wrapped up, one by one. Most of the assets have been auctioned off, the trustee is sorting out and verifying the many customer claims they received, and now we even have a target date for the liquidation of the Cedar Falls headquarters.
26
Feb
2013
The Latest Legal Eagles: Hedge Funds
Managed futures and hedge funds are often lumped together, and may share a few similarities, but there have been a few hedge funds in the news lately over things that you just won’t see CTAs doing.
25
Feb
2013
Futures Industry Tectonics, Part II
The competition between ICE and CME Group, has been increasingly fierce lately. First, there was the announcement that ICE has reached an agreement to purchase NYSE Euronext – potentially making it the third largest futures exchange in the world. Now there are reports that the CME may be considering a merger move of its own, joining up with the Eurex exchange in what could represent an unprecedented consolidation of the global futures trade.
15
Feb
2013
Ignoring the Biggest CTA Trade in Years
Several news organizations couldn’t help but fall all over themselves this week talking about how George Soros made a billion in the Yen and other U.S. funds scored big in the Yen. But when the press started pointing out the big winners this week, we couldn’t help but notice a glaring omission: no mention of CTAs. We can’t even get a mention?
