As an ongoing feature of this website, we decided that we would go the extra mile and track the performance of a large number of long term established Commodity Trading Advisors (CTA’s) reported by the NilssonHedge crowd-sourced CTA database.
May 2019 saw another positive performance result for the Commodity Trading Advisors as a group. This is the fourth consecutive month in a row for positive returns in the CTA Composite Index (12)....however despite the solid performance of the CTA's as a whole, we saw a slight negative result for the Trend Following Global CTA's.
April brought a bit more joy and welcome relief to the Commodity Trading Advisors (CTA's) providing an overall 1.55% return to the CTA Composite Index (15). This is the third consecutive positive month of performance from the Composite Index and provides welcome relief to the overall stagnation and building drawdowns that have been experienced across the sector since the equity high of April 2015.
As is typical in this world of speculation and just like a Francis Ford Coppola thriller, just when you want to get out......it pulls you back in.Here we were in February deep in the doldrums with not a breeze about....and then in March we go straight into the roaring forties. The Trend Following index (TF Index) was able to claw back the building drawdowns from January and February to bring the YTD calendar period to a break-even result.
I continuously scratch my head thinking about the paucity of allocations towards the Commodity Trading Advisors (CTA's) that practice the shady art of trading divergence. While they fit into the neat but sometimes spurious classification of 'active manager', the skill is thrust towards the management of risk as opposed to the 'more sexy' active pursuit… Continue reading Very Certain about Uncertainty – Silence you Rusting Ninny!!!