Analyzing commodity trading advisor’s is never an easy task. In analyzing a specific CTA manager for the first time, there are many different tools or statistical values that should be considered in order to determine whether or not a CTA’s strategy is investable. One of the most important areas of discussion…
Investors often approach aiSource on the concept of high water mark and how commodity trading advisors (CTAs) calculate their fees. In short, high water mark is the highest net asset value or account value that a CTA has reached during the life of your managed futures investment. In order for the CTA manager…
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…
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,…