Managed futures surpasses all other hedge fund investment strategies in AUM for Q2

Discussion in 'Professional Trading' started by ASusilovic, Oct 10, 2010.

  1. BarclayHedge announced that managed futures has, for the first time since BarclayHedge began tracking hedge fund performance data in 1985, surpassed all other investment strategies, based on assets under management. At the end of the 2nd Quarter 2010, managed futures accounted for $223.4 billion of the total $1.78 trillion invested in all types of hedge fund strategies; followed by Event-Driven strategies ($222.4) and Emerging Markets strategies ($190.3 billion).

    According to Sol Waksman, founder and President of BarclayHedge, “In recent periods of prolonged stock market decline, managed futures have performed well. In 2008, for example, the negative correlation between equities and managed futures was dramatic: the S&P 500 dropped 37% while the Barclay CTA Index – which measures managed futures performance – improved nearly 15%. However, the current growth in managed futures assets has been largely unrelated to stock market correlation or to recent commodity prices, and has been more closely aligned with changing sentiment among sophisticated investors, who are now seeking transparency, liquidity and lower downside volatility within their portfolios.”
  2. Would you like to explore why/how CTAs in general can achieve lower downside volatility, considering the potential in the long run individual managed futures accounts could have unlimited risk/liability?