After highlighting the grain markets posting fresh 2.5 year highs yesterday (and then seeing them promptly sell off), the Softs staged a rally of their own today to push them to 13 to near 30 year highs (and Bernanke is still claiming no inflation?)
One odd thing concerning managed futures… While nearly every systematic multi-market trader we track has at least one long position on in the grain sector; only 20% of the multi-market managers we track are long cotton, sugar, coffee, or cocoa. Most programs we track exited long soft trades in mid-November and seemingly have not found a lower risk re-entry point as volatility continues to expand.
But is there also a little career risk/”nobody ever got fired for choosing IBM” going on here? In the managed futures space, it can be a lot easier to defend taking the wrong side of a trade in traditional, liquid markets like Corn or Wheat – and a lot harder to tell investors you lost their money in the significantly less liquid Cocoa or Coffee markets.
We’ll see if these recent trends entice some managers to brave the Soft markets a little bit more frequently and in greater quantities.
Where is Dighton Capital?
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.