CTAs find a profitable course in risky waters

Commodity trading advisors (CTAs) are bucking the trend in the hedge fund industry. This strategy has been one of the few bright spots in a difficult year characterised by spiralling losses and mounting redemption notices across a range of strategies. Trend-following CTAs have been able to record significant gains in falling markets by taking short positions on stock and commodity index futures.

CTA/managed futures funds are the top-performing strategy on many hedge fund indices. The strategy was

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