Interestingly, Quadriga's status illustrates a significant difference between US and European regulations. In Europe CTAs are considered to be hedge funds, and as such subject to the same regulatory regime.
In the US, CTAs are a different classification, and while most do not choose to target retail money they do have the option of seekign SEC approval - as Quadriga has done.
I think, reading between the lines, this is the reason why there is suspicion of Quadriga in the European CTA market. It's undeniable that a lot of managers really don't want retail money; although it tends to be stickier than some institutional allocations (especially funds of funds) a lot of small outfits can, frankly, live without the hassles, regulatory and managerial, of Mrs Tiggywinkle's three grand.
Which leads to their conclusion - justified or not - that anyone who goes after this money, risking the opprobrium of the mainstream press if they mess up, must have 'something wrong with them'.
I am the first to admit that I have no idea whther this is reasonable doubt or blind prejudice, but it's my best guess as to why that sentiment exists - which it undoubtedly does.
Maverick here clearly thinks he's on to a winner, and Quadriga clearly perform well (albeit not always on a risk adjusted basis to the best of my knowledge). I'm just trying to pass on what I've heard in the market without claiming knowledge I haven't got.
In the US, CTAs are a different classification, and while most do not choose to target retail money they do have the option of seekign SEC approval - as Quadriga has done.
I think, reading between the lines, this is the reason why there is suspicion of Quadriga in the European CTA market. It's undeniable that a lot of managers really don't want retail money; although it tends to be stickier than some institutional allocations (especially funds of funds) a lot of small outfits can, frankly, live without the hassles, regulatory and managerial, of Mrs Tiggywinkle's three grand.
Which leads to their conclusion - justified or not - that anyone who goes after this money, risking the opprobrium of the mainstream press if they mess up, must have 'something wrong with them'.
I am the first to admit that I have no idea whther this is reasonable doubt or blind prejudice, but it's my best guess as to why that sentiment exists - which it undoubtedly does.
Maverick here clearly thinks he's on to a winner, and Quadriga clearly perform well (albeit not always on a risk adjusted basis to the best of my knowledge). I'm just trying to pass on what I've heard in the market without claiming knowledge I haven't got.
