“CTAs Turn to Fundamental Models in Search of Diversification” (HFR)

“CTAs Turn to Fundamental Models in Search for Diversification”
Hedge Funds Review
April 2, 2012

Selected excerpts:

[text-with-icon icon_type=”font_icon” icon=”icon-quote-left” color=”Accent-Color”]“A growing number of commodity trading advisers (CTAs) believe fundamental strategies can help improve the return profile of trend-following managed futures programs.”[/text-with-icon][text-with-icon icon_type=”font_icon” icon=”icon-quote-left” color=”Accent-Color”]“Patrick Welton, CEO and CIO at Welton, cites analytic diversity as one obvious benefit of including fundamental models within a diversified managed futures program. ‘You always benefit from having a variety of inputs and analytical approaches for arriving at trading positions, assuming they are at least as effective as the core approach,’ he says.”[/text-with-icon][text-with-icon icon_type=”font_icon” icon=”icon-quote-left” color=”Accent-Color”]“‘Fundamental models are one of the pathways to diversification,’ says Welton. ‘They are particularly useful because the analytic frameworks and inputs for fundamental models can be quite diverse.’”[/text-with-icon]

Welton Investment Partners