Why Should Investment Professionals Consider Offering Alternative Investments?
Alternative Investments are more versatile and add value to a portfolio that is already saturated with traditional investments (stocks, bonds, mutual funds & ETFs).
- Flexible Fee Structures
- Ability to utilize leverage
What Are Key Aspects of Setting Up an Effective Managed Futures Program?
In addition to a good back office infrastructure, appropriate and flexible service providers, accessible program with appropriate risk/return metrics, clean marketing materials and good performance, we would also include:
- Identify an edge in the markets
- Set up a disciplined investment strategy to capture that edge
- Avoid curve fitting
- Overlay a robust risk management system
- Structure investment points of access consistent with the strategy and trading parameters
What tools can CTAs use to market their managed futures programs?
- Register with CTA databases
- Participate in the CTA Challenge
- Attend industry conferences
- Network with capital introduction teams and brokers
- Use a proper CRM to track existing and prospective clients
- Gain exposure on websites that promote the managed futures industry such as coquesttradersresearch.com
How do Commodity Trading Advisors report their performance to the CTA Database?
CTAs are encouraged to self-report monthly ROR and AUM each month via email to Coquest by sending their monthly performance updates to firstname.lastname@example.org.
What if I forget to report my performance to the CTA Database?
The program will be dropped from the visible list of live/current programs on our website 2 weeks after month-end if you have not reported monthly program rate of return (ROR) and assets under management (AUM). Not to worry, as soon as you provide current monthly numbers, we will automatically reinstate your visible program listing. If you happen to forget to report your monthly performance, contact Coquest at email@example.com.
How do I get my profile listed on the Coquest Traders Research website?
Reporting to the Coquest CTA Database is the same as getting a listing on the Coquest Traders Research website. Any further marketing would have to be negoiated with the Coquest team. Contact Coquest at firstname.lastname@example.org, or your current Coquest representative.
How can CTAs stay current on trends in alternative investing portfolio management?
CTAs can stay informed on portfolio management trends by subscribing to several industry publications, attending industry conferences and keeping in regular contact with industry brokerage companies. Another key way that CTAs can stay current on alternative investing and managed futures portfolio trends is to subscribe to the Coquest Traders Research members only site for the latest premium news. Additionally, CTAs can access the Coquest Traders Institute for managed futures and alternative investment research and resources. Finally, CTAs can sign up and participate in the CTA Challenge to gain valuable insight on their program’s performance versus industry peers.
Why should CTAs participate in the yearly CTA Challenge? What's in it for them?
The CTA Challenge is a free annual competition for CTAs that is advertised throughout the alternative investment industry. Coquest regularly publishes a list of the current Top 5 ranking programs in the CTA Challenge along with bi-weekly newsletters that contain further information about participants. This provides great exposure for the participating CTAs which may help them raise assets. Furthermore, Coquest provides official badges to the annual Winner and Top 5 participants which they may display in their marketing materials.
What are the most common questions investors ask when vetting CTAs?
- What is the background of the Portfolio Manager and/or the Principals of the firm?
- Are the principals invested in the trading program?
- Is the track record audited?
- What is last 12-month Rate of Return?
- What is the minimum account size?
- What are the fees?
- What is your investment process or strategy and its edge?
- What is your risk management process?
- Do you expect any tracking error between the performance of your program and my investment?
- What is the trading strategy?
- What markets do they trade?