There’s been so many words written about the redemptions and outflows of Hedge funds over the past week (here, here, and here), we didn’t think it was necessary to add ours. Then, Preqin released the money flows of Hedge Funds as well as Managed Futures (CTAs) thus far in 2016, and we simply couldn’t resist.
Meanwhile, CTA funds that use futures contracts boosted assets under management by 11% with inflows of $17 billion.
For the sake of consistency, we’re using Preqin’s numbers, while there were other databases reporting slightly more and slightly less. What we found particularly interesting wasn’t even the striking difference of money flows in Managed Futures compared to their cousin, Hedge Funds, but how much more money Managed Futures could be seeing the rest of 2016.
Say what you want about underperformance, fees, and saturation, but it seems to us that investors are smart enough to see the forest (Managed Futures) for the trees (Hedge Funds).
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.
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