Gwyn Roberts

08/06/2011 Author: Gwyn Roberts

Editor's view: 9 June 2011

Despite the vagaries of April and May’s commodity markets, recent data from Agecroft Partners suggests that investor demand for CTAs remains not only robust, but increasingly active.

The same months’ similarly jagged impact on some Asia-based funds – scything a quarter’s worth of gains away in certain cases – has also, judging by two stories in HFM this week, as well as current HFR figures, hardly retarded the current growth-spurt of these funds.

Two anecdotes, covering a legion of strategies, but proving one fact: investors are a far sturdier bunch than many would have us believe. They are also still particularly interested in strategies that are genuine diversifiers.

This is particularly encouraging for CTA managers, completely divorced from the equity markets, who have benefited from a surge in interest of late. Largely stemming from investment consultants – perhaps a tad ignorant of this space on the past – and a recent run of allocations from some of the historic first movers in the pension fund space, CTAs are beginning to see real inflows.

HFM has been writing about this trend for some time and, given the long-tail of the average DDQ, we expect to see it continue through the year. Agecroft also expects activity in this space to be one of the defining factors of 2011, pointing out that trends in pension fund investment rarely flourish overnight, but nor do they quickly wither. Good news for the average CTA, despite a rough couple of months.  

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