Weekend Reads: Liquidity Fear

When Correlations Go to One – (A Wealth of Common Sense)

A rollicking week in the markets is really a chance to clean up your act – (Barry Ritholtz)

China’s Missteps Tarnish A Reputation For Economic Management – (NPR)

JP Morgan blames CTAs for markets volatility (eye roll) – (Barrons)

Flash crashes create liquidity fear – (Lakewood Views)

Mind the Gap: Assessing Labor Market Slack – (Liberty Street Economics)

Public Transit Should Be Uber’s New Best Friend – (FiveThirtyEight)

Just for Fun:

Reuters Employees Bombarded With Reply-All Email Catastrophe – (WSJ)

Agricultural giant Monsanto drops bid for competitor after $47bn offer rejected – (The Guardian)

Nate Silver on Election Forecasting – (Bloomberg View)

1 Billion People Visited Facebook on Monday – (Slate)

Alternative Links: Post Freak Out


Wall Street slump highlights liquidity crunch in U.S. options market – (Reuters)

Commodity Traders Feel Unusual Pain of a Market Rout – (Wall Street Journal)

How did Managed Futures do while the Dow was Down 1000 – (Attain Alternatives Blog)

3 Effective Ways to Hedge Portfolio Risk – (Equities)

‘Alternative’ Mutual Funds Providing Limited Protection — (Wall Street Journal)

One Millennial’s Letter To CNBC – (Zero Hedge)

Death Cross:

The Death Cross with Michael Covel on Trend Following Radio – (Covel)

The Dangers of the Death Cross Indicator – (Attain Alternatives Blog)

Industry News:

Catalyst Converts Auctos Managed Futures Hedge Fund Into Mutual Fund – (FIN Alternatives)

25 Questions Every Investor Should Know About Golden Point Capital

25 Questions Every Investor Should Know About Golden PointLet’s face it, when you take the time to evaluate possible strategies for your long term portfolio plans (especially Alternative Investments) there are a lot of choices out there, and it’s not always easy to create a so called short list, or even make a choice when you have that said short list.

Performance tends to dominate conversations with interested investors, quickly followed by risk control. But performance is just one of the many factors to consider before honing in on a manager or a strategy that could be right for you. For instance, how important is the manager’s background to you? What about the style of trading or minimum investment? Does holding period mean anything to you?  We’re here to help you ask the questions that might not have crossed your mind, or find more detailed answers to questions you wanted to ask.

Along those lines – we are launching a series of whitepapers over the coming months, starting today, sharing the details of some of the Q&A sessions performed as part of our due diligence process – to give investors a better understanding of the people in the Managed Futures space and how their trading strategies work.

First up, Golden Point Capital. Click here to download the “25 Questions Every Investor Should Know About Golden Point Capital

PS – we happen to have Golden Point’s performance during the recent mini-crash.

25 Questions Every Investor Should Know About Golden Point

How did Managed Futures do while the Dow was Down 1000

Now that the dust has settled somewhat after the mini crash of last Friday and Monday – we’re getting calls fast and furious asking how managed futures fared during the Dow losing a few thousand points.

Here’s how the Managed Futures indices did on Monday, and how they stand so far for August and YTD versus the S&P 500.

Managed Futures Indices August 24thSource: Newedge

But people don’t invest in indices, they invest in actual programs – which usually wait until the end of the month to report performance. Thinking that may be a little too long for many to wait in order to see how specific programs handled this volatility – we compiled some estimates of different programs we work with each day:

(Note: All performance for August 24th and MTD are estimates.)Managed Futures Managers Performance August 24thHere are how the Attain Funds are doing:


Past performance is not necessarily indicative of future results, but this is a real time, real life example of why investors put programs like these in their portfolios, zigging while the market works out one heck of a zag…

P.S. – Systematic trending following strategies typically rely on trends that last multiple weeks or months to capture returns, especially the ones referred to when talking about crisis period performance. If this volatility is just the beginning of a substantial move lower, we could see some big numbers as we enter fall. But If Monday was the peak for this bout of volatility, this could be quickly forgotten by trend followers.

P.P.S. – It’s worth noting that that the managed futures space has not only different categories but also different strategies within those categories. The strategies that have been experiencing good returns (like options traders) over the past couple of years have been giving back those returns rather drastically since the recent uptick in volatility.


Weekend Reads: Rankings, Bears, and Science

End of the Bull:

Is the Bull Dead? – (Barry Ritholtz)

Managed Futures:

Semi-Annual Managed Futures Rankings – (RCM Alternatives)

MF Global:

Judge Paves Way for Nearly Full Recoveries for MF Global Brokerage Creditors – (Wall Street Journal)

Just for Fun:

Science isn’t Broken – (Five Thirty Eight)

This 1977 Chicago Tourism Video Is The Most ’70s Thing Ever – (DNAinfo)

Digital Marketing Transit Map – (Gartner)

Post-Katrina New Orleans Smaller, But Population Growth Rates Back On Track – (NPR)

Thousands call for Jon Stewart to moderate debate – (The Hill)

The Late, Great Stephen Colbert – (GQ)