This is the 23rd year Futures has profiled emerging commodity trading advisors (CTAs), and while every year is unique, we have seen a trend in recent years toward more short-term and option programs. This year we focus on three unique option programs. 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 and offer something unique.
It is always a tough road to launch a new trading business, and this year has been even more difficult because managers looking to get off the ground also had to cope with the failures of MF Global and Peregrine Financial Group.
When reviewing candidates, we look not only at recent performance, but also 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 let us know how you are doing.
Continue reading for more on each of our three Hot New CTAs…