This is the 22nd year Futures has profiled emerging commodity trading advisors (CTAs). While every year is unique, we have seen a trend in recent years toward more short-term programs. That continued in 2011. Perhaps this is the result of a difficult environment for trend-followers, but it also may be a realization that for emerging managers to be recognized, they must separate themselves from the pack. Last year was a difficult one for CTAs up until the fourth quarter, and the BarclayHedge CTA Index is following a similar pattern in 2011 through the summer months.
When reviewing candidates, we look not only at recent performance, but the manager’s general approach to trading, risk management and consistency in style.
Previous "Hot New CTAs" have gone on to great success and some have slipped into obscurity. This is not an endorsement but a review of new talent. We would like to thank all the managers who sent us their documentation. We will do this again next year, so look for our announcements.
Continue reading for more on each of our top three Hot New CTAs…