The act of the disappearing CTA

As part of a larger dataset derived from CTA registration with the NFA, we track the birth and death rate of CTAs. Despite a relatively good year for CTAs in 2019, we are observing a rather steady decline in the number of managers. Currently, we have 2752 managers that are carrying a regulatory status with the US regulators. Over the last couple of months, we have seen a net decline of approximately 30 managers per month. This represents a decline rate of more than 10% on an annualized basis.

Naturally, the hostility towards active management seems to have carried over to Futures Managers. In Managed Futures, there are no “passive options” and the alternative is more likely to allocate money to traditional long-only assets. The lack of seeders has also hurt the smaller managers, which are more likely to close than established managers.

You can track which managers are closing and opening at https://nilssonhedge.com/reports/new-and-closed/. We also operate a weekly email service with the names of recently registered managers. Please contact us ( linus@nordichedge.com) if you would like to be added.

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