Why CTA Strategies Are Failing Investors… Instituional Investor

Here is one takeaway:

”Since the financial crisis, the enormous amount of liquidity pumped into global markets by the Federal Reserve and other central banks around the world has essentially chased away volatility. “As a result, CTAs have adapted their trading techniques to be more profitable in the recent market environment and as a result they’re less capable of hedging equity corrections,” said Nigol Koulajian, founder and chief investment officer of quant hedge fund Quest Partners. Among other moves for the current environment, many CTAs have changed their time frames to sell when markets turn down.”

Do read the whole thing here:

https://www.institutionalinvestor.com/article/b18vkdp4mp5d1w/Here-s-Why-CTA-Strategies-Are-Failing-Investors