Our friends over at Auspice Capital Advisors are out this week with a banger of a paper – titled, “Managed Futures and Trend Following CTAs — Ten Reasons to Invest”.
You can download the full paper here to see all their great graphics along with the list, but here are a few of our favorites from the list:
Q1 2023 hedge fund letters, conferences and more
1. The biggest and brightest investors in the world use CTAs: Sovereign wealth plans and pensions have used CTAs for decades. Recently, many pensions have created more specific “Risk Mitigation” and “Crisis Risk Offset” portfolios, with CTAs making up the biggest allocation.
2. They tend to do well in Crisis Periods: We’ve been banging this drum for as long as you can remember (see our infographic here and Why Managed Futures page here, but Auspice ups the ante with a bigger/better list of crisis periods
3. Inflation Protection: With most CTAs heavily invested in commodities, it’s no wonder they can and do provide inflation protection. We cover this in a section of our ‘Guide to Trend Following’ whitepaper (download here), and Auspice does a nice job of putting some numbers to it based on CPI:
Article by RCM Alternatives.
