Turning Asset Allocation on its Head
- Topics:
- Commercial Lending
- Tags:
- Access Asset Management,
- Software,
- Operational Planning,
- Office Suites,
- Microsoft Office,
- Manager,
- Management,
- Business Operations,
- Asset Management,
- Asset Allocation,
- ...
- Source:
- Futures Magazine Group
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Overview: To grow the managed funds business, allocators need to seed new traders to help them learn to trade greater funds under management. Article discusses one firm’s method to profit from emerging CTAs while curbing the associated risk. The most frustrating part of being an emerging commodity trading advisor (CTA) is trying to get institutional allocations. Institutional allocators — for the most part don’t want to hear from CTAs until the trader has built a track record and has significant money under management. A new index is targeting emerging managers and may provide a bridge for managers to reach the institutional threshold. Access Asset Management’s Emerging CTA Index (ECI) turns that allocation model on its head and aims to capture the greater returns emerging managers typically earn. Access came up with the index to take advantage of those outsized returns while minimizing the various risks associated with emerging managers. A manager involved in Dunn Capital Management’s Strategic Allocation program points out that even a good idea is nothing without someone willing to invest in it. There are many CTAs using new strategies earning their few customer significant returns without achieving the growth expected considering performance.
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Format: PDF | Size: 46KB | Date: Aug 2003 | Pages: 3
