Author: JonPaul Jonkheer

  • The Case for Proprietary Trading Style CTAs

    | | Commodity Trading Advisor

    The CTA space has struggled mightily over the past 10 years.  We believe a CTA manager with a proprietary trading skill set, proven over time throughout various market regimes, is the necessary future of the industry.  Trading proprietary firm capital under an SMA structure can have multiple benefits.  This way, firms do not have the overhead and headache of bringing on a new trading team.  Both parties are free to focus on what they do best; trading and managing risk.  … Read more The Case for Proprietary Trading Style CTAs
  • August Calm Gives Way to Limited Opportunities for Managed Futures

    | | Investment Strategies

    September came and went with a relative whimper. It was our view that various key macro events scheduled throughout the month coupled with uncertainty over monetary policy, had the potential to produce significant moves across global markets. As it turned out..with the exception of the commodities sector…this was not the case. U.S. equities ended the month flat (+0.02%), however turned in a good quarter with the S&P 500 returning 3.8%, bringing gains for the year to a +7.8%. Once again with all eyes and ears tuned to central banks..policy uncertainty had a virtual choke hold on markets, and as a … Read more August Calm Gives Way to Limited Opportunities for Managed Futures
  • CTAs Stung by Low Volatility in August

    | | CTA Summary, Performance

    Following a flat July, CTAs struggled in August. A concomitance of low volatility, range bound markets, lack of follow through on existing trends, as well as an emergence of new trends, resulted in negative performance for several managers. The extremely low volatility environment was challenging for most systematic managers as their strategies had little to work with. This absence of any meaningful follow through resulted in a portion of previously accrued gains being absorbed back into the markets … Read more CTAs Stung by Low Volatility in August
  • Managed Futures Prospers from BREXIT Blues

    | | Flash Report

    The IASG Trend-Following Strategy Index posted an estimated net return of +4.59% for June. The dominant theme in June was the UK referendum on EU membership, or ‘Brexit’ and the attendant surge in volatility that resulted in positive performance for CTAs. Trading conditions for systematic diversified managers were conducive due in large part to an increase in market volatility and sufficient directionality across markets and time frames … Read more Managed Futures Prospers from BREXIT Blues
  • Another European Summer of Discontent

    | | ECB, Education, RMG Wealth

    The most obvious and immediate European problem is the UK’s Brexit vote on 23rd June, and momentum has clearly swung away from the remain camp in the last two weeks. What was seen as only a minor risk for financial markets has quickly become a huge potential risk and prices have begun to adjust. In our opinion, this is not just an issue of migration but a problem of the average man on the street simply does not feel that their lives have improved materially since the Global Financial Crisis. There are a huge number of voters who feel completely disaffected and simply want change. This is not an issue unique to the UK. Huge numbers across Europe and the US are in the same boat and the risk of a series of anti-establishment votes in the next year or so is growing … Read more Another European Summer of Discontent