Commodity trading advisors outperformed spectacularly in the traumatic markets of 2008, but were wrongfooted by the rebound and then plateau in 2009. Net-net, have managed futures accounts emerged from the crisis with their appeal enhanced, or diminished? Elise Coroneos reports.
In the dark days of late 2008, when stockmarkets were in a downward spiral and liquidity in the world economy had all but dried up, managed futures firms were experiencing a ‘told you so’ moment.
For years, these firms’ sales pitch had been that they were uncorrelated with mainstream markets, especially when markets were falling. Now they had a chance to prove it.
Millions of people watched as the value of their stock portfolios disappeared before their eyes. Yet many commodity trading advisors (CTAs), the entities that trade managed futures, produced positive returns.
In October, November and December 2008, as the rest of the investment universe reeled,...