Although every year we profile emerging CTAs, we preface the story with a qualification that the feature is not an endorsement but a review of new talent, we certainly like it when our Hot New CTAs follow-up that distinction with solid performance. We are proud when former Hot New CTAs merit consideration for our Top Traders of the year feature and several have made that jump. Last year’s selections have done well.
Monarch Capital Management (MCM)
MCM finished 2005 extremely well returning 44.14% for the year, more than doubling its year-to-date return as of August 18.94%. So far in 2006 it has made modest gains, 1.35% through July, but has gotten itself noticed growing its money under management nearly five fold.
K2 Capital Management (Now K4)
CTA K4 has the distinction of never having a down month in its short history. Given that we have been in a shrinking volatility environment through the last few years, and that K4 is an option writing program that might not have been too remarkable, but it has kept that streak alive another year despite a spike in the VIX this spring. K4 is up 18.82% through July and its money under management has surpassed $15 million.
K4 has opened another program with less risk and continues to charge no management fee and receive beneficial execution rates for its customers. Its fee structure produces a near 0% breakeven level for customers and should be applauded and emulated.
Fitrol Investment Management
Fitrol managed to keep its head above water in 2005, earning 3.88%, following its superb 2004. So far this year it has performed well, returning 11.91% through July.