Differnce between managed futures managers and CTAs

Discussion in 'Professional Trading' started by Rudolf13100, Sep 5, 2008.

  1. Hello,

    I am having a hard time finding out whether managed futures managers and CTAs are the same thing or not. Could you help?

  2. bolter


    In essence they are exactly the same. CTA is a more US-centric term, and has less prestige associated with it.

    CTA's generally operate through managed accounts whereas Managed Futures will typically have a fund(s) plus managed accounts.

  3. Thanks for your response Bolter.
  4. CTA is an NFA/CFTC designation as is a CPO. A CTA basically is a fund manager, either by giving advice to people with their own accounts or to pools. A CPO basically creates the pools; in other words, a CPO gathers the money and a CTA manages it. One person/entity can be a CTA and a CPO.
  5. A CTA makes directional bets on the markets? He uses technical and fundamental analysis?
  6. bolter


    Yes they take directional bets (versus arb, relative value etc); and most use techicals and are systematic. Purely fundamental CTA's are a rare breed.
  7. Therefore a CTA would argue against the efficient market theory?
  8. bolter


    Most assuredly!