Funds Hub

Money managers under the microscope

Back to the Futures

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At the turn of the year managed futures funds/CTAs were the talk of the town after a stonking 2008 in which they gained 18.33 percent while the average fund lost 19.07 percent.

Six months on and they have become one of 2009′s laggards, losing 5.23 percent while the average fund is up 6.72 percent.

The problem has been a lack of clear trends in futures markets, which CTAs follow to make their money.

The worst case scenario, which has happened in some markets this year, is an apparently long-term trend suddenly reverting, catching out those who’d been betting on something a bit longer-lasting.

Managing for the future

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One thing that the credit crisis has demonstrated is that even performing well isn’t always enough to stop investors in need of cash from taking their money out of a hedge fund.

rtr5afThe industry had its worst year on record last year, losing nearly 20 percent in performance terms, but not everyone lost money.

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