Although every year we profile emerging CTAs, we preface the story with the 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. Last year’s profiles’ performances are mixed. Two managers finished the year strongly, though both of them are down for 2008 after one experienced an extremely tough month, and another has dropped out altogether.
Vision Capital Management
Vision continued its impressive run following last year's profile. The program returned 24.02% in the fourth quarter and finished 2007 up 56.14%. Vision was up 29.03% through June but had a 34.24% drawdown in July and is up 6.95% in the last 12 months (as of July).
DeSoto Capital Management
DeSoto finished strong in 2007 with a 29.42% performance in the fourth quarter giving them a return of 88.09% on the year. The equity index program got off to a rough start in 2008's volatile equity markets, but has recovered some and is down 5.28% on the year through August. The program is still up 21.97% over the last 12 months.
Ace Capital Management
Ace — not affiliated with Ace Investment Strategists — finished 2007 with a drawdown ending down 13% for the year and is no longer managing customer funds. Ace Principal Robert Weinreb still trades his methodology with proprietary capital.