"Retail" investment in leading CTAs
- Thread starter AFJ Garner
- Start date
Question to OP :
Can you elaborate on the UCIT structure use of the swap ?
Do all UCITS CTA's (hedge funds) use a swap ? I looked at some UCIT funds such as DB funds and saw no mention of swap.
Is that the only drawback you see in UCITs ?
It looks as though most of the true "retail" offerings are disappointing , this includes funds lauched by the big banks.
Another thing to be aware of; CTA's with small minimums are often emerging CTA's with a shorter track record and focused on a few markets, (reason for the small min.) this means less position diversification thus higher risk.
Can you elaborate on the UCIT structure use of the swap ?
Do all UCITS CTA's (hedge funds) use a swap ? I looked at some UCIT funds such as DB funds and saw no mention of swap.
Is that the only drawback you see in UCITs ?
It looks as though most of the true "retail" offerings are disappointing , this includes funds lauched by the big banks.
Another thing to be aware of; CTA's with small minimums are often emerging CTA's with a shorter track record and focused on a few markets, (reason for the small min.) this means less position diversification thus higher risk.
Larry Williams and Michelle Williams both won the World Cup ---- Michelle has a great career. So does Larry, just in a different way
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Tim Sykes was number 1 on covestor for years. It seems that the World Cup is the only one with any credibility or publicity among the public. Autumn Gold? Can you name one top ranked world CTA that started there? I see Dunn listed-- but I don't think they got there start there. I had to look it up.
That is not correct. Many CTA's have investment min. of 50 K or less. You can not call yourself a CTA if you are not one. I think that would mean serious trouble.
From the viewpoint of offering "retail" size investments, there are a couple problems that I think account for shortage of offerings. I am surprised that these well-known CTAs are even offering small minimums.
The first problem is that investors looking for low minimums usually don't have much money to invest. They also tend to be less sophisticated and often less reasonable. Consequently, money managers usually find small investors are more trouble than they are worth. They require more hand-holding and can sue just as readily over $10 thousand as $10 million.
Another problem is that the regulatory environment in the USA makes CPO marketing and administration very expensive. It's mostly only the biggest CTAs that have the resources, yet it is the smaller CTAs that are producing the more attractive returns.
No one on Facebook knows me either. Or the 22000 people that saw an ad leading to two Bloomberg articles. I'm sure I'm anonymous still but the euphoria of messianic initiation feels good because you can be yourself.
Then there's years on boards pointing out falsity and ridiculous notions of not recognizing spurious correlations or simply trading on correlations.
As someone who has discussed deployment of hard currency as a weapon, you better believe I know how to trade, so I'm sure those folks who read that information and follow trades of mine that affect the economy by hundreds of thousands of dollars a day still don't know me, and I'd kind of like to keep it that way actually.