CTAs provide market-beating returns: Agecroft’s Steinbrugge
By Chris ClairDonald Steinbrugge of Agecroft Partners says the quantitative analysis employed by commodity trading advisers, or CTAs, has allowed the funds to beat the broad market and deliver positive returns.
“They’re using quantitative analysis versus fundamental, so the performance of CTAs is very different than your traditional fundamental manager,” Steinbrugge says. “So when markets go down—like the S&P 500 has gone down in 2000, 2001, 2002, 2008—CTAs were up in all four of those markets, some of which were up double digits. So people are investing in CTAs in order to diversify their portfolios.”
March 8th, 2012 at 10:52 pm
We watch a few managed accounts and find that they indeed beat the S&P over the long term. With these higher returns however comes higher risk. So the greater part of well-performing CTA managed accounts is the mastery of risk management!