How should an investor compare a CTA strategy they are considering investing with? How should a manager that is looking to market and promote his/her strategy to investors compare their strategy to other’s? These are common questions we receive from both our investors and the commodity trading advisors that we speak with.…
A strategy that has become more popular over the last 10 years in the managed futures space is something called option selling. Commonly known as selling options, option writing or selling premium, commodity trading advisors employ this technique in hopes of generating a profit for their investors. For many new…
Whenever an investor opens an account with a commodity trading advisor (CTA), they are required to read and sign a disclosure document (except when a CTA is for QEPs only and chooses not to have a disclosure document). A disclosure document is usually fifteen to forty pages long, and outlines…
A recent discussion with a potential investor encouraged us to write this article and explain in its simplest form what futures contracts are and who utilizes them. As an investment advisor in managed futures, we overlook the core ideas of how the futures markets started and their purpose. Prior to…