Each CTA is a member of the NFA and has an audited track record. The big advantage over other types of similar discretionary trading accounts, is the total transparency that the client has, as he can access and see his account positions on a daily basis. Also, of significance is the relative liquidity offered by CTA’s. Accounts can be liquidated upon clients request, if they so wish, in a short period of time usually 2 to 3 days as opposed to hedge funds that may have some restrictions in that area.
CTAs are monitored by the specific FCMs we have chosen. Their statistics are tracked rigorously, allowing our clients to use specific software to look for diversification when choosing various managers, taking into account mathematical correlations. Clients can also consult with anyone of our experienced brokers for assistance in constructing a managed futures portfolio that meets their investment criteria.
Although historical regression simulation is no guarantee of future success, Fintec Group can create a customized report on each CTA that we cover, as well as create “What if Scenarios” going back in time, while trying different combinations of CTAs. You may also choose from the various CTAs available in our Managed Futures Database.
The CTA industry is growing, and the reason is simple. Individual investors, pension plans and family offices, are looking for diversification in their investments, allowing them to try to level off the risk of just being in one sector of the market (stocks, bonds, real estate).