Dighton ASP estimate July performance -40.8% Year to date -53.6% Annualized ROR +27% Since strategy inception (2003) +589% NAV USD $ 1,524.24 NAV EUR ⬠1,013.33 A lot of CTA´s getting burned in July and August. http://www.autumngold.com/ManagedCap/managedCTAProfile.php?op=profile&id=101
investors would be very surprised knowing how many managers (almost all of them): - trade without a stoploss - don't employ any diversification (over 50% of assets is allocated in single strategy/market/direction) - trade just for rebates and markups - use disaster-attracting superhigh leverage - write long term options and book small premiums as profits only to hit gigantic losses few months later. the truth is, almost every manager i had contact with does not care about the quality of his strategies. not even a bit. investors think that many years of "experience", NFA memberships, university degrees, previous jobs at major banks is something which is likely to produce positive performance..... they'll be just screwed hard by another greedy, hazard loving, ego-inflated moron in $3,000 suit. but hey, this is exactly what investors ask for. nobody asks or cares about how the particular program makes money or is manual trading involved.
interesting to see $AUM always explode just before huge DD to lose 50% trading probably over 10 or perhaps 30 markets? you have to suffer losses of 80% on some markets and 20% on some better ones AND lose on each and every of these markets. Judging from AUM and trading leverage, the owner of this firm is celebrating his huge financial success.
The page shows their assets ending on July 31st was 142,000 USD ??? Thats all. Even if they lost 40% of 240 million in July, they should be left with 140 million. The clients were smart and fast enough that they acted to withdraw all 120 million immediately !! Does above figures/situation sound correct to you guys ? or do you think that 142,000 USD AUM is a printing mistake ?
free hint to shitvestors: is the root cause of the losses in the negative difference between entry and exit prices (sort of 800 stoplosses in a row) or is the root cause in markups generated on a massive amount of trades? there can be other reasons like entering a Gold short trade at 1500 with half of fund's assets and closing it at 1900 :eek: let me guess. there is not even a single investor who cares about such issues. they think manager is an expert and he should know what to do to make profits. in reality, its the opposite.
fifty silly moving average systems applied to 5-10 most liquid markets would never produce such horrible results. such portfolio can easily make 20% returns with max 20% drawdown. but of course, investors don't know that. they think licenced managers are employing all the best research to make money for them. while, the truth is, they are doing EVERYTHING possible on Earth to lose as much as possible. there are thousands of examples to prove this fact. dighton is an exception. they've wanted to earn very badly. the computers burnt doing research. yeah.
i read about a hedge fund recently that took a huge loss shorting CHF b/c "it went too high". by def if you keep shorting something as it keeps going up you have no risk management. investors should know the manager can do bonehead things like this when they sign the scrip docs and wire $. a lot of managers could be replaced with a simple donchian channel breakout simple w/ a good risk management strategy attached much like the turtles.