I have written in the past about the difficulties of becoming a Commodity Trading Advisor. Even if your track record is superb, there are still some other factors that determine whether or not you will be able to attract capital and stay in business for years to come.

A recent article highlights some of the benefits of small hedge funds.  According to a Pertrac Financial Solutions study, “smaller funds have historically been more profitable than big hedge funds.” The study went on to state that the average return for small funds was 11.74% through last December, while medium and large-sized funds posted 10.24% and 10.22% respectively.

You can read the full article here

Why these statistics highlight the benefits of allocating a portfolio of your managed futures portfolio to emerging CTAs, I must also point out that the attrition rate for smaller Commodity Trading Advisors is also higher. As such, due diligence and constant monitoring of smaller, start-up managers are extremely important.

BCM monitors several emerging managers. Contact us for more information.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.  THERE IS SIGNIFICANT RISK OF LOSS WHEN TRADING FUTURES AND OPTIONS. ALWAYS REVIEW A DISCLOSURE DOCUMENT BEFORE INVESTING IN ANY MANAGED FUTURES PROGRAM.