Last September, we were the first to report that Managed Futures had skyrocketed to the #1 hedge fund strategy in terms of assets under management (blog post), according to data collected by Barclay Hedge, with $223 Billion in total assets vs the massive $1.7 Trillion Hedge Fund industry. As we fast forward to the end of 2010 where assets swelled in hedge funds to a grand total of $1.96 Billion (aprox 15% increase) we’ll note again that Managed Futures has retained its #1 raking with total assets under management of $266.8 Billion = a 19.4% increase.
Hold on just a minute…When looking at data, such as the above, it is always important to dig a little deeper. One question that came to mind was how much of that money can be attributed to investment gains and losses vs new money. A quick glance at the Barclay Hedge CTA Index returns shows that the entire index was ahead just over 7% during the 6-month period from July – December. Compare this figure to the Barclay Hedge Fund Index, which increased just over 10% during the same period, and we can rationalize that Managed Futures #1 ranking is likely attributed to new money entering the market looking for the potential benefits of Managed Futures in their portfolios. Read our recent newsletter Rethinking the Efficient Frontier for more information on the diversification advantages of Managed Futures
||Assets (in Billions)
||Assets (in Billions)
||Equity Market Neutral
|Equity Long Bias
|Source: Barclay Hedge
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.
Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.
Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.
Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.
Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.
RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.