Trading styles and strategies: A broad church

Tue Oct 6, 2009

Expansion and diversification
The combination of anexpanded futures market and improved technology has not only supportedthe growth of assets under management in the managed futures spaceworldwide, it has also underpinned the continued diversification of theCTA sector.

"It is important to stress that, five or 10 years ago, CTAs formed avery homogenous asset class," says Mathieu Vaissié, of the fund offunds management group at Lyxor Asset Management in Paris, which nowhas 18 pure CTAs on its platform. "Then, they were more or less alllong-term trend-followers. That is not the case at all today."

The rapid expansion and diversification of the managed futuresmarket has led to a blurring of definitions, with some commentators describing CTAs as hedge funds and others insisting that they are not.Emmanuel Balarie, for example, managing director of the Chicago-basedBalarie Capital Management, notes on his website that the first popularmisconception about the industry is that "managed futures are hedgefunds." Others,...

ISSN: 2151-1845 / CDC10004H

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