Analyzing Hedge Fund and CTA Fee Structures

Investors know that the traditional fees charged by a hedge fund or commodity trading advisor are 2/20 – a two percent annual management fee for assets under management, and a twenty percent incentive fees on net new profits generated by the fund.  While the standard has long been the 2/20…

Read More

Generating Alpha: What does that even mean?

Alpha! It’s a term frequently used within the managed futures space, but what do people mean when they reference it and how does it benefit an investor? Prior to understanding the concept of Alpha, one must understand the basis of the modern portfolio theory (MPT). Initially developed in the 1950’s,…

Read More