Managed Futures Down -1.32% in August

While it seemed there might be some trends of note around the middle of August; reversals in grains, energies, and bond markets in the last week of the month helped push managed futures into the red, with the Newedge CTA Index reporting managed futures down -1.32% in August.

While a loss of just over 1% isn’t the end of the world, the bigger context is starting to get worrisome – with the loss marking a fourth consecutive losing month, and the year to date performance now negative (-1.30%), threatening a fourth losing year out of the past 5. We can’t help but remember the old lady in the basketball classic Hoosiers, who tells Coach Norman Dale:

“Sun don’t shine on the same dog’s ass every day, but, mister you ain’t seen a ray of light since you got here.”

For many who became interested in managed futures following their 2008 performance, they sure “ain’t” seen a ray of light since they got here in 2009/2010. Here’s to hoping some worrying and calling out the recent losses will cause a contrarian rally heading into the end of the year…. And by the way, that guy who hadn’t seen the ray of light since he got to town, he did go on to win the championship (past performance is not necessarily indicative of future results).

Here’s the main managed futures indices performance for the year:

MANAGED_FUTURES_INDICES_090

N/R = Not Reported Yet
Indices listed in order from oldest to newest.
Disclaimer: Past Performance is not necessarily indicative to future results.

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DISCLAIMER

Forex trading, commodity trading, managed futures, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors.

The entries on this blog are intended to further subscribers understanding, education, and – at times- enjoyment of the world of alternative investments through managed futures, trading systems, and managed forex, and is not intended as investment advice, or an offer or solicitation for the purchase or sale of any financial instrument. Unless distinctly noted otherwise, the data and graphs included herein are intended to be mere examples and exhibits of the topic discussed, are for educational and illustrative purposes only, and do not represent trading in actual accounts. Opinions expressed are that of the author.

*The mention of specific asset class performance (i.e. +3.2%, -4.6%) is based on the noted source index (i.e. Newedge CTA Index, S&P 500 Index, etc.), and investors should take care to understand that any index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship and self reporting biases, and instant history.

The mention of general asset class performance (i.e. managed futures did well, stocks were down, bonds were up) is based on Attain’s direct experience in those asset classes, estimates of performance of dozens of CTAs followed by Attain, and averaging of various indices designed to track said asset classes.

It should be noted that past market performance is not indicative of future market movement.No market data or other information is warranted by Attain Capital Management as to completeness or accuracy, express or implied, and is subject to change without notice.

Managed Futures Disclaimer:

Past Performance is Not Necessarily Indicative of Future Results. The regulations of the CFTC require that prospective clients of a managed futures program (CTA) receive a disclosure document when they are solicited to enter into an agreement whereby the CTA will direct or guide the client’s commodity interest trading and that certain risk factors be highlighted. The disclosure document contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA.