Top Traders of 2007

March 2, 2006

From Black Enterprise:
Coming off of three tough years for managed futures in general and trend followers in particular, the CTA community had its best year since 2003 and many traders say this could the beginning of a long run. While the universe of commodity trading advisors had its best performance in recent years in 2007, many of the stalwart long- term trend followers continued to struggle. Campbell & Co., John Henry and Dunn all experienced double-digit losses on some programs, but the larger CTA universe experienced strong returns as the Barclay CTA index returned 7.57%, its best year since 2003.

The year started out poorly for most CTAs as bonds chopped around, but soon many long-term trends emerged. Crude oil bottomed out at about $50 in January and moved basically straight up to $100 by year-end. Grain markets, particularly soybeans, had a sustained rally for much of the year; most currencies appreciated against the dollar and bond markets, after chopping around for the first two quarters, experienced a smooth trend for the second half of die year.

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Rydex sees commodities, currencies in favor

February 29, 2006

From Reuters UK:
Investors are shying away from equities and showing a preference for products that offer exposure to alternatives such as managed futures and currencies, the director of portfolio strategies at Rydex Investments said on Friday.

Rydex, which oversees about $18 billion in assets, is known for products such as inverse funds that move in the opposite direction from a market, or that magnify the direction of a move.

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A lighter shade of high-risk trading

February 13, 2006

From The Globe and Mail:
Trading futures contracts holds the promise of big gains, but the risks are probably too high for the average do-it-yourself investor to stomach.

However, one way to get a taste of the futures market while mitigating the danger is through managed futures.

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Assets that zig when stocks zag

February 8, 2006

From The Seattle Times:
In recent months, stocks around the world have been heading in the same direction: down. That has investors searching for alternative assets that zig when stocks zag. Two assets that have little correlation with stocks ...

Managed futures

In managed futures funds, commodity-trading advisers buy futures contracts for currencies and commodities, such as oil or silver, betting that the underlying assets will rise or fall in value within a certain time frame. One provider, Rydex Investments, has funds based on the S&P diversified trends indicator index. Rydex says the index has a -0.08 correlation with the S&P 500. A correlation of 1.0 means two items move in lock step; a correlation of -1.0 means the two move in opposite directions. A reading of 0 means they have no direct relationship. The index likewise has a low 0.04 correlation with bonds, as measured by the Lehman aggregate bond index. Rydex Managed Futures Strategy Fund (RYMTX) has a 4.75 percent maximum front-end sales charge and expenses of 1.81 percent.

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Justice Dept seeks change on futures exchanges: report

February 6, 2006

From Reuters:
The U.S. Justice Department has called for change in financial futures exchanges, saying they should not own the trade clearing business as it inhibits competition, The Wall Street Journal reported on Wednesday.

The report said the Justice Department's recommendation could affect the potential merger of CME Group Inc (CME.N: Quote, Profile, Research), parent of the Chicago Mercantile Exchange, and Nymex Holdings Inc (NMX.N: Quote, Profile, Research), parent of the New York Mercantile Exchange.

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Managed-Futures Giant Hurt By Currencies in ‘07

February 4, 2006

From FINalternatives:
Managed-futures behemoth Campbell & Co. was hurt last year by trades in the currency market, as well as in fixed-income and equities. The firm’s $11 billion Financials, Metals & Energy Large Portfolio was down 13.38% and its 22-year-old $1.5 billion Global Diversified Large Portfolio lost 11.21%—its first losing year since 1986.

“Losses for the portfolio from currency trading continued into year-end as market participants sold high yielding currencies, particularly the British pound,” wrote Teri Becks, president, in an investor letter. “Fears that the U.K. housing market and general economic growth would slow caused the Pound to finish off 4% on the month. Smaller losses were experienced in fixed-income trading and trading in equity indices as U.S. and European stock markets were extremely volatile in December, while Asian stocks continued to move lower.”

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Gold futures close up 2% after hitting record

January 28, 2006

From MarketWatch:
Gold futures closed with gains after surging to a record $929.80 an ounce Monday, as a weaker dollar and expectations of another Federal Reserve rate cut boosted demand for the precious metal.

Gold for February delivery hit the high of $929.80 an ounce on the New York Mercantile Exchange, surpassing the record of $924.30 set on Friday.

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Make It Eight Years In A Row For Managed Futures

January 23, 2006

From FINalternatives:
Managed futures gained 7.54% in 2007, making it eight straight years of positive performance for the strategy, according to year-end data compiled by BarclayHedge. In fact, over the past 28 years, the Barclay CTA Index has had only three losing years–in 1992, 1999 and 1999, with minor losses of 0.91%, 0.65%, and 1.19%, respectively.

“The managed-futures industry has provided comfortable, stable growth for investors for many years,” said Sol Waksman, founder and president of BarclayHedge. “Since the year 2000, managed futures have provided an compound annual return of 5.67%.”

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Out of the Pit: Futures Go Online

January 14, 2006

From Barron's Online:
ONE OF THE LAST BASTIONS OF OPEN-outcry trading, the futures pits, will be almost entirely automated by the end of 2008. That should allow many more retail customers into a marketplace that's traditionally been dominated by professionals.

Capitalizing on its experience making options trading more accessible, Chicago's optionsXpress (www.optionsxpress.com) has improved upon the futures-trading platform that's now integrated with its other offerings and promises to help would-be traders. From the trading tab on the optionsXpress menu, a customer can click on "Futures" and get set to go.

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Canadian Futures Shop Launches Two New Programs

January 3, 2006

From FINalternatives:
Toronto-based Integrated Managed Futures Corp. today unveiled two new trading programs. The IMFC Multi Strategy Program will invest the bulk of its assets in the firm’s existing IMFC Global Investment Program, and 10% in its new IMFC FxVol Program.

IMFC’s diversified trend following Global Investment Program, which started trading last February, gained some 17% in 2007. The program currently manages some C$4 million in assets under management.

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Futures stay put as Fed rate decision looms

December 11, 2006

From Yahoo! News:
Stocks index futures were little changed on Tuesday as investors turned cautious before the Federal Reserve's meeting later on Tuesday, which is expected to bring an interest-rate cut.

Washington Mutual (WM.N), one of the largest U.S. home mortgage lenders, fell before the opening bell after it said late on Monday that it would cut its dividend by nearly three-quarters, eliminate more than 3,000 jobs and raise $2.5 billion in new capital.

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Despite returns, advisers bullish on managed futures

December 10, 2006

From InvestmentNews:
The performance of managed futures is languishing, but that hasn't diminished their appeal among financial advisers.

Assets in managed futures totaled $184.8 billion Sept. 30, up from $170 billion at the end of 2006 and $130 billion at the end of 2005, according to Barclay Hedge Ltd. of Fairfield, Iowa.

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Futures add to gains on ADP jobs data

December 5, 2006

From Yahoo! News:
Stock index futures extended gains on Wednesday after a report showed much larger private-sector employment growth in November than economists were expecting.

S&P 500 futures were up 9.7 points, above fair value, a mathematical formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.

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US dominance of managed futures funds under threat

November 29, 2006

From Financial Times:
US dominance of a fast-growing part of the computer-driven, or quantitative, hedge fund industry is under threat from the rising influence of managed futures funds based in London and continental Europe.

North American managed futures programmes - hedge funds which attempt to profit from computerised trading in futures markets - have seen their share of the $185bn market drop from 74 per cent in 2001 to 54 per cent at the end of the third quarter, according to calculations by data provider Barclay Hedge.

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New Website Explains Benefits of Managed Futures

October 24, 2006

From SBWire:
Managed Futures are an asset class that people have been flocking to for the last decade. As the stock market continues to oscillate and daily price moves of hundreds of points become more common, the wealthy are flocking to non-correlated assets. The commodity markets are in one of the biggest bull markets we’ve seen in decades so it makes sense that people are looking to diversify into these areas and a professionally managed futures account is a perfect solution for many people.

Commodity Trading Advisors are registered with the National Futures Association to handle assets for the public. They are required to have audited returns and to file a copy of their disclosure document with the NFA. Periodic reviews and audits insure that the investor can get a true feel for the way a manager trades and what kind of risks they take to make those returns. When reviewing the results of a managed futures account an investor must make sure the program is registered with the NFA and has an audited record.

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Managed Futures Bounce Back In September

October 19, 2006

From FINalternatives:
What a difference a month makes: August heat gave way to a cooler September breeze as managed futures gained 3.76% last month, according to flash estimates from the Barclay CTA Index. The Index dropped 1.63% in August.

All eight of Barclay’s CTA indices were profitable in September. Diversified traders jumped 5.24%, systematic traders gained 4.14%, and the financial and metal traders index was up 2.31%. Seven of the eight of Barclay managed futures indices show modest gains for the year. The only exception is the agricultural traders index, which is down 2.26% for the first nine months of 2007.

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Exchange chief hints at futures trades for water

October 18, 2006

From Times Online:
The prospect that water may eventually join crude oil, pork bellies, orange futures and other commodities traded on global markets was raised in Tokyo today by Craig Donohue, the chief executive of the Chicago Mercantile Exchange.

Mr Donohue, who runs the world's largest commodities trading exchange, declined to confirm directly that water would become a tradeable commodity, but told The Times: "We are working on a lot of products".

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Stock futures steady ahead of earnings

October 18, 2006

From BusinessWeek:
Wall Street moved toward a slightly higher open Thursday ahead of another batch of third-quarter earnings reports and data that will likely show regional manufacturing is slowing.

Investors will examine earnings reports from Bank of America Corp., Bank of New York Mellon Corp., Google Inc., and Pfizer Inc. About 60 members of the Standard & Poor's 500 index have reported quarterly results so far this week.

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A Look At The Next Generation of Commodity Indexes

October 11, 2006

From SeekingAlpha:
Investors seem to have a love-hate relationship with commodities. Not me - long time readers know that I am a big fan of both commodities and managed futures. Three months ago I wrote an article on managed futures and how Renaissance was planning on launching a $25 billion fund. Recently, Morningstar (MORN) announced some new commodity indexes, and I thought I would take a look under the hood.

[This is also a great example of a former alpha source becoming commoditized and repackaged as alternative beta at a much lower cost. If I ran a CTA/CPO, or was considering becoming a long term trend-following CTA, I would focus on a system that has zero or negative correlation to the long term trend-followers (which the vast majority of CTAs are). Take note highly compensated "alpha" managers everywhere, your jobs are in danger!]

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Managed Futures: Pitfalls in Performance Evaluation

October 10, 2006

From The Market Oracle:
While the futures industry's regulatory rules provide clear guidance as to the presentation of managed account composite performance reporting, there are pitfalls in making investment decisions based on a track record's outward appearance without considering the potential for internal distortions.

In the first article of this three-part series about managed futures we alluded to concerns about the intricacies of adept CTA performance evaluation. This article further explores that topic.

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MF Global acquires Australian futures broker

September 28, 2006

From Reuters:
MF Global Ltd (MF.N: Quote, Profile, Research) said it acquired BrokerOne Pty Ltd, a Sydney-based futures broker, strengthening its position in the Australian futures and options market.

Further details of the deal were not disclosed. It expects the deal to add to its earnings over the next 12 months, the futures and options broker said in a statement.

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FUTURES s.r.o. has launched a new information portal about managed futures

September 27, 2006

From PR-inside.com:
A consulting company FUTURES s.r.o., a specialist in managed futures and hedge funds, has launched a new information portal containing an overview of available industry-related sources, the latest news concerning managed futures, interviews with managers, as well as audio and video files about this issue. The portal centre is the database of managed futures programs (currently containing about 200 programs), where each of which is subject to a thorough statistical analysis.

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Futures-based hedge funds buck trend with 6% gain

August 16, 2006

From FinancialNews-US.com:
Hedge funds following the oldest computer-based strategy, managed futures, have bucked the trend of quantitative firms’ losses by recording gains of up to 6% this month, according to bankers.

French group Systeia Capital Management said its managed futures fund had risen 5.97% from the beginning of August to the end of trading on Friday. US quantitative asset manager First Quadrant’s global macro fund is up 2% this month, say investors. However, the UK’s Winton Capital said its fund was down 1% last week.

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Listen to the music

August 12, 2006

From ArabianBusiness.com:
I was recently interviewed by a reporter in Europe whose focus on investing reflected the ideas of most people I meet. He wanted to know what the next hot investment was going to be and how he should get into it before everyone else does. But instead of phrasing the question in that way he queried: "So where is the music going to play next?"

My answer was the same one I've given for the past 11 years. Those of us in managed futures are not clairvoyants, and we don't have to be, because with managed futures funds, the music plays everywhere.

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Campbell Reopens Futures Portfolios To Investors

August 6, 2006

From FINalternatives:
Managed-futures giant Campbell & Co. is reopening a pair of futures portfolios to investors. The Financial, Metals & Energy Portfolio, which has over $9 billion of Campbell’s $11 billion in assets under management, and its $800 million Global Diversified Portfolio, which is only offered in the U.S., will reopen on Sept. 1.

Campbell’s FME portfolio, which has been trading for almost 25 years, closed at the end of 2004 to offshore investors and in the first quarter last year to onshore investors. “The investing world has changed substantially over the last three years, allowing Campbell to again accommodate demand for its pure managed futures programs,” said Terri Becks, the firm’s president and CEO.

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A Primer For Profits In Energy Futures

August 6, 2006

From Forbes:
Prices for crude oil, crude oil products and natural gas futures constantly change in response to new information and reflect the adjustments being made to previous and prospective expectations. The relative size and duration of those adjustments often depend on the nature of the new information and the way it is received.

Unanticipated new information quite often induces extreme price volatility, creating a price shock. For example, the 1973 oil embargo by OPEC members caused oil prices to spike to historical highs.

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Bursa to launch US dollar CPO futures

July 31, 2006

From TheStar:
Bursa Malaysia Bhd plans to launch US dollar-denominated crude palm oil futures contracts in September, chief executive officer Datuk Yusli Mohamed Yusoff said.

“We hope to launch the contracts later this year, hopefully in the next two or three months,” he said at the sidelines of the Securities Industry Development Corp’s incorporation and the unveiling of the Industry Transformation Initiative programme yesterday.

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US STOCKS-Futures turn negative, point to weaker open

July 30, 2006

From Reuters:
U.S stock index futures erased gains and turned negative on Monday, echoing the nervousness about the global credit environment that sent Wall Street to its biggest drop in five years last week.

S&P 500 futures <SPc1> were down 2.3 points, below fair value, a mathematical formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.

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Emerging Markets, Managed Futures Pace 2nd Quarter

July 17, 2006

From FINalternatives:
Emerging markets and managed futures strategies had the strongest second quarter among hedge funds, according to Morningstar, as the average hedge fund returned 5.25% over the past three months.

Emerging markets added 9.7% in the second quarter. “China funds fueled strong performance, recovering from the market setback in late February,” Morningstar said. “Solid energy markets in Russia and Brazil bolstered returns for many of the emerging markets funds.”

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Vision Capital Sets Sights On $100M

July 17, 2006

From FINalternatives:
Utah-based Vision Capital Management has lofty goals for its 17-month old Global Futures fund. The firm recently hired third-party marketing firm R Capital Advisors to shop its $1 million fund to institutional investors, and raise some $100 million by July 2008.

Principal Dario Michalek said RCA initiated the talks with Vision to represent the firm and thinks institutional investors are finally getting their arms around managed-futures products. “Pension fund managers have become more comfortable with managed futures as a whole and view it as a good diversifier in their portfolios,” he said.

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Renaissance's New $25B Managed Futures Fund: Perfect Timing?

July 11, 2006

From SeekingAlpha:
When the best hedge fund on the planet decides to launch a new fund, it bears watching. Even more interesting is the area Rentech has decided to pursue.

Below are my comments as there seems to be a great deal of misunderstanding in the commodities and managed futures space.

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Managed Futures: A Model for Incubating Talent

June 30, 2006

From The Market Oracle:
The idea of traders staking other traders for a slice of profits is probably as old as trading itself. Fast forward to the late 1970s and one unearths Commodity Corp. which is remembered for launching the renown careers of Michael Marcus and Bruce Kovner. And in 1983 Richard Dennis is legendary for having made a bet with William Eckhardt which led to his recruiting and training the “turtles.”

One of Richard Dennis' earliest if not first client was Bradley N. Rotter, [1] who established a successful track record by investing early with traders like Joe and Bob Hickey, Willis-Jenkins , Mississippi River, EMC Capital and Hawksbill Capital. In 1990 Rotter founded a company called The Echelon Group with the idea of forming joint ventures with talented traders and then helping them grow into niche money management firms.

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New rules on futures target big investors

June 28, 2006

From Shanghai Daily:
CHINA'S new rules on trading stock-index futures will limit the derivatives to institutions at the initial stage, and turnover won't be heavy enough to significantly affect the stock market, industry analysts said yesterday.

Market observers also noted that blue chips may be spotlighted in the debut of the index futures, which will be based on a gauge tracking the top 300 Chinese mainland public firms.

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S&P futures slip after core PCE revised

June 28, 2006

From Reuters UK:
Standard & Poor's 500 stock index futures lost some ground on Thursday after government data showed first-quarter core personal consumption spending, an inflation gauge favored by the Federal Reserve, was revised higher.

S&P 500 futures were down 2.2 points, just above fair value, a mathematical formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.

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Futures extend gains on sales, slip in yields

June 13, 2006

From Reuters:
Stock futures extended gains on Wednesday as data pointing to strength in consumer spending boosted optimism about corporate profits and as bond yields backed off from five-year highs.

S&P 500 futures were up 7.50 points, above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.

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Asset Alliance Offers Barclay-Based CTA FoF

June 11, 2006

From FINalternatives:
New York-based Asset Alliance Corp. has launched a managed futures fund of funds featuring managers included in the Barclay CTA Index, it announced at the Managed Funds Association Conference in Chicago.

The BTOP50 Managed Futures Fund will include 23 CTA programs; those expected to be in the fund include industry heavyweights such as Kaiser, Winton Capital Management, Armajaro and FX Concepts. The fund of funds is registered with the Securities and Exchange Commission, and features a simplified tax structure, making it available to established asset allocation models.

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Natural-gas futures climb on demand, supply risks

May 30, 2006

From MarketWatch:
Natural-gas prices climbed Wednesday to trade closer to their highest level in a week, as the market got a fresh start with July as the front-month futures contract and traders looked toward summer-heating demand, two days before the official start of the Atlantic hurricane season.

Crude-oil futures also climbed, after suffering a loss of more than 3% in the previous session, as most traders bet that a U.S. report will show increases in crude and gasoline supplies, but kept a wary eye on any developments in Nigeria.

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NDF may lose out to Dubai's Re futures

May 30, 2006

From Business Standard:
Rupee futures, to be soon launched by the Dubai Gold and Commodities Exchange, is likely to be a preferred hedging and investment mechanism against currency fluctuations over the existing non-deliverable dollar/rupee forward market in south-east Asia, corporate treasurers said.

The Dubai exchange will launch rupee futures on June 7, after holding a mock trading session for its members June 2. “There was a need for a more transparent market than NDF markets currently operating on over-the-counter basis,” said Colin Griffith, chairman, DGCX.

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China`s futures investors to have security fund

May 20, 2006

From Zee News:
China will set up a fund worth up to $103.9 million to compensate futures investors in case their brokers fail to pay back their margin, the securities watchdog said.

According to the provisional regulations on futures investors security fund management jointly issued by the China Securities Regulatory Commission (CSRC) and the Ministry of Finance, the fund worth up to 800 million yuan (USD 103.9 million) will start operation on August 1.

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ICE sees first Dubai crude oil futures trade

May 20, 2006

From Reuters:
ICE Futures (ICE.N: Quote, Profile, Research new Dubai sour crude oil futures contract saw its first trade early on Monday in the opening salvo of ICE's battle with the New York Mercantile Exchange for the dominant Middle East contract.

Atlanta-based IntercontinentalExchange, which already hosts Europe's benchmark Brent crude contract, stole an 11-day march on its top rival by announcing its own Middle East contract just as the Dubai Mercantile Exchange (DME), a joint-venture between Dubai, Oman and the NYMEX (NMX.N: Quote, Profile, Research, delayed its offering to June 1.

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Oil sinks as traders weigh prospect for supply rise

May 1, 2006

From MarketWatch:
Crude-oil futures closed at their lowest level in over a week Tuesday, with pressure from expectations for a second-weekly rise in U.S crude supplies outweighing support from news that Venezuela's government took over the country's last privately-run oil fields.

Crude for June delivery finished with a loss of 2%, down $1.31, at $64.40 a barrel on the New York Mercantile Exchange. That's the contract's lowest closing level since April 20, and the decline marked a full retreat from the day's high of $66.15.

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UPDATE 1-Chicago futures marts hit by steady Fed ideas

May 1, 2006

From Reuters UK:
Chicago's two big futures exchanges posted rare declines in trading volume in April, hurt by lower volatility in key interest rate markets.

At the Chicago Mercantile Exchange (CME.N: Quote, Profile , Research) average daily volume fell by 8 percent from April 2006 to 4.9 million contracts, the first time the largest U.S. futures mart posted a year-on-year monthly decline since November 2003.

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Former JWH Marketer Heads West

April 18, 2006

From FINalternatives:
Ted Parkhill, a former marketer for John W. Henry & Co., has become the latest departure from the fast-shrinking firm. Parkhill has found a new home within Dekker Capital Management, an Incline Village, Nev.-based managed futures shop.

“He left with a group pf people around the same time that Mark Rzepczynski left,” founder Jason Dekker said, referring to the former JWH president and chief investment officer. “John [Henry] let about five people go at about the same time and Ted was one of those. I met him initially at the MFA conference in Miami, and he came to our office for a few days; once by himself and a few weeks later he came back with his wife. He really liked out programs and performance and thought it was a perfect fit for him.”

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Reliance Money gets into global futures mkt

April 18, 2006

From The Economic Times:
Reliance Money, promoted by Reliance Capital of the R-ADAG group, has tied up in an exclusive partnership with the Chicago-based Alaron Trading Corporation to break into the fast-growing global commodity futures trading scene in India. The partnership will enable traders in India to execute trades via the leading international commodity futures exchanges, including the CME, CBOT, NYMEX and NYBOT.

"Expanding our global presence, especially with a company like Reliance Money, allows Alaron to seamlessly embrace the rapid expansion in the futures market," said Scott Slutsky, Managing Director of Alaron Trading. "Global alliances, such as this one, are critical to the vitality of the futures market."

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CBOT to Host Ethanol Futures Seminars

April 13, 2006

From Farm Futures:
A series of educational seminars for managing price risk using ethanol futures contracts, hosted by the Chicago Board of Trade, will be held in six Midwestern cities in April and May. The seminars are free and open to the public.

The seminars will be held from 10:30 a.m. until 4:00 p.m. Seminar topics will include an overview of CBOT Ethanol futures and OTC products, advanced strategies for managing ethanol price risk and a market outlook.

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It's All About the S&P Futures

April 13, 2006

From TheStreet.com:
As usual, the story of the week has been the S&P futures. Yes, there's been the usual noise about crude oil prices, earnings, worries about earnings and same-store sales, and today it has been about the producer price index and consumer sentiment. Oh, and this week's news has also been about Don Imus. But how can you trade off any of that?

In fact, when it's all said and done, the market has gone nowhere for the past five sessions. But certainly, there has been plenty of movement and lots of opportunities for those who know what to look for and what to tune out.

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Managed Futures Lead CS/Tremont Index Through January

February 16, 2006

From Black Enterprise:
The Credit Suisse/Tremont Hedge Fund Index began the year with a 1.33% gain in January, maintaining its streak of positive monthly performance as managed futures funds turned in the month's biggest gain.

With U.S. equities on the march, consumer confidence nearing a five-year high, the labor market expanding and wages and consumer spending up, hedge funds in the CS/Tremont found a relatively benign climate in which to do business, according to the report. The Federal Reserve was seen as unlikely to hike interest rates and fuel costs are down, and the overall view is that the economy will not slow anytime soon.

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Crude, natural-gas futures recover from two-week lows

February 15, 2006

From MarketWatch:
Crude and natural-gas futures managed to recover from their lowest levels in two weeks Thursday as traders continued to digest the latest weekly data on U.S. supplies for petroleum and natural gas. March crude closed at $57.99 a barrel Thursday, ending the session with a loss of one penny after dropping to a low of $56.65 earlier. March natural-gas also recovered from a low of $7.05 to close at $7.292 million British thermal units, up 5.1 cents.

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Greenrush Launches Global Diversified Futures Program

January 19, 2006

From FINalternatives:
Sherman Oaks, Calif.-based Greenrush Capital Management this month launched the Cycle Fund-A program, a discretionary, globally-diversified futures program with a systematic overlay.

Andrew Klein, principal, said he uses a seasonal and counter-seasonal approach combined with specific pattern recognition to enter into trades. His trading decisions are determined by historical databases, technical analyses and volatility expectations. Typically, Kline’s positions are taken in intra-market and inter-market futures spreads in electronic exchanges. 

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Natural-gas futures rally on weather forecasts

January 19, 2006

From MarketWatch:
Natural-gas futures rallied Friday to close at their highest level in a month and ended the week with a gain of more than 4% as weather forecasts called for below-normal temperatures for much of the U.S.

The natural-gas move helped crude-oil prices climb 3% for the session and close near $52 a barrel.

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Crude futures top $64 a barrel, then pare gains

December 20, 2006

From MarketWatch:
Crude-oil futures climbed past $64 a barrel Wednesday after the Energy Department reported a fourth-weekly decline in U.S. crude supplies, but prices for the commodity pared gains as traders factored in the first distillate inventory climb in 11 weeks.

At the same time, natural-gas futures dropped to a fresh, two-year low under $7 per million British thermal units on the eve of a government supply update.

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Stocks Rise Amid Mixed Earnings

December 20, 2006

From The Washington Post:
Stocks rose Wednesday as investors sifted through mixed corporate profit news to gauge the strength of the economy.

With little of the type of economic news that has helped drive markets in recent months, some investors looked to profit reports from FedEx Corp. and CarMax Inc. as proxies for the economy's health.

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Gold futures end lower for the day, up for the week

December 1, 2006

From MarketWatch:
February gold closed at $650.60 an ounce Friday, down $2.30 for the day, but up $16.20, or 2.5%, for the week on rising concerns over a slowdown in U.S. economic growth. March silver added 7.5 cents to close at $14.19 an ounce, up 7.2% for the week. March copper closed at $3.172 a pound, down 2.35 cents for the session, but up 1% from last Friday's closing level.ac 

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U.S. Stocks Fall on Economy Concern; Caterpillar, Intel Decline

December 1, 2006

From Bloomberg:
U.S. stocks slipped after a report showed manufacturing unexpectedly contracted for the first time in more than three years and a measure of inflation jumped.

``We may be faced with stagflation: rising inflation and a falling economy, which is probably the worst of all worlds,'' said Edgar Peters, who manages $21 billion as chief investment officer at PanAgora Asset Management in Boston. ``It's probably time to get defensive, if you're not already.'' 

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Japan Bond Futures Erase Decline as Report May Signal Slowdown

November 22, 2006

From Bloomberg:
Japanese bond futures erased declines on speculation the government will downgrade its view of the economy for the first time in two years, weakening the central bank's case for a second interest-rate increase this year.

Today's Cabinet Office report will describe the economy as ``recovering although weakness is detected in consumption,'' according to a Nihon Keizai article yesterday. The report compiled in October said the economy was ``recovering,'' using the same expression for the ninth straight month, the newspaper said.

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Stock futures edge up; trading thin, Dell eyed

November 22, 2006

From Reuters:
U.S. stocks looked set to rise slightly on Wednesday, with stock index futures pointing higher after Dell Inc. (DELL.O: Quote, Profile, Research) reported better-than-expected earnings, setting the stage for gains by technology shares a day before the Thanksgiving holiday.

Trading volume is likely to be light as many market players leave work early before Thursday's holiday. The U.S. Treasury bond market is expected to close at 2 p.m. (1900 GMT) on Wednesday.

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Gold futures retreat from a high above $630

November 14, 2006

From MarketWatch:
December gold fell $3.50 to $622.30 an ounce, reversing from earlier gains and retreating from a high of $630.40 as the U.S. dollar gained some ground against the euro. But Peter Grandich, editor of the Grandich Letter blamed the downturn in gold on "further erosion in copper and other base metals. December copper was down 0.75 cents at $3.0675 a pound. December silver lost 5.5 cents to stand at $12.83 an ounce.

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Stock futures point flat; retailers in focus

November 14, 2006

From Reuters:
U.S. stock futures signaled a flat Wall Street opening on Tuesday after mixed early results from retailers including Home Depot Inc. (HD.N: Quote, Profile, Research), and with investors on edge before inflation data.

Home Depot, the world's largest home improvement retailer, reported a flat quarterly profit that missed analysts' estimates. For details, see <ID:nWEN9739>. Its shares were down 1.1 percent in European trading.

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UPDATE 1-Futures slash chances of Fed rate cuts on payrolls

November 3, 2006

From Reuters:
Futures dealers slashed the implied chances of Federal Reserve rate cuts on Friday after the October payrolls report showed a surprising drop in the jobless rate.

A slump in futures prices on the data removed the implied chances of a Fed rate cut by January <FFG7> and briefly showed a slight chance that the central bank could actually increase interest rates in December <FFF7>.

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U.S. stock futures rise before October jobs data

November 3, 2006

From Reuters:
U.S. stock index futures rose on Friday, but the course of trading will hinge on payrolls data due before the opening bell that may dispel concerns about excessive slowing of the economy.

Shares of heavy equipment maker Caterpillar Inc. (CAT.N: Quote, Profile, Research) and wireless technology supplier Qualcomm Inc. (QCOM.O: Quote, Profile, Research) could be active after both companies warned of trouble ahead in 2007.

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Crude, natural-gas futures fall as traders focus on supply

October 27, 2006

From MarketWatch:
December crude fell by 16 cents to $60.20 a barrel in trading on the New York Mercantile Exchange, but were trading above last week's closing level of $59.33 after the surprise decline in U.S. crude supplies. November natural gas was down 3.7 cents at $7.46 per million British thermal units on its final trading day as a front-month futures contract. The December contract was down 1.7 cents at $8.05.

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US stock futures extend fall after GDP data

October 27, 2006

From Reuters:
U.S. stock futures briefly extended a fall on Friday after a key economic report showed the U.S. economy grew at a weaker-than-expected pace in the third quarter, raising doubts about a moderate economic slowdown.

The gross domestic product report was the weakest in more than three-years.

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Chicago futures exchanges to merge

October 18, 2006

From The Sydney Morning Herald:
THE United States' two largest futures exchanges have announced plans to join forces in a $US8 billion ($10.6 billion) deal that reflects the growing role of trading in complex financial instruments tied to interest rates, foreign currencies and even the weather.

The parent company of the Chicago Mercantile Exchange will buy the holding company that runs its long-time rival, the Chicago Board of Trade, part of a wave of consolidation in financial markets, as exchanges seek to cut costs, expand product offerings and fortify themselves against global competition.

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U.S. Stock-Index Futures Extend Gain on Consumer Prices Report

October 18, 2006

From Bloomberg:
U.S. stock-index futures extended their gain after consumer prices fell more than forecast, signaling inflation is under control.

The consumer price index dropped 0.5 percent in September following 0.2 percent increase in August, the Labor Department said. Excluding food and energy, so-called core prices rose 0.2 percent for a third month.

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COMEX copper futures end lower in sleepy business

October 10, 2006

From Reuters:
Copper futures in New York ended lower on Tuesday, in line with weaker oil and precious metal markets, as the market found little reason to break out of its wide trading range, sources said.

"There was nothing to it today. I guess we saw some selling pressure from the weakness in oil and gold, but other than that it was really quiet...and I expect that to continue this week with the LME week going on," said one COMEX floor dealer.

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U.S. stock futures up on Google deal

October 10, 2006

From Reuters Canada:
U.S. stock futures pointed to a slightly stronger open on Wall Street on Tuesday, with Internet stocks seen gaining after Google Inc. (GOOG.O: Quote) agreed to acquire video entertainment site YouTube Inc. for $1.65 billion in stock.

Google shares had climbed to their highest in more than 5 months at $431.95 on speculation about the deal on Monday and surged again when the acquisition was announced after the closing bell.

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Crude futures drop under $60 a barrel

October 3, 2006

From MarketWatch:
Crude-oil futures dropped under $60 a barrel Tuesday to push the benchmark contract to a 10-month low, pressured by swelling U.S. inventories as traders questioned whether leading oil producers, notably Saudi Arabia, would lower production to stop the decline in prices. November crude was last trading down $1.33 to $59.70 a barrel on the New York Mercantile Exchange, after reaching a low of $59.55 -- a level the contract hasn't seen since last November 2005. November natural gas fell by 13.8 cents to $5.505 per million British thermal units.

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U.S. Stock-Index Futures Retreat; Marvell, GM Shares Slide

October 3, 2006

From Bloomberg:
U.S. stock-index futures fell on concern earnings growth may falter as the economy slows.

Marvell Technology Group Ltd. dropped after the mobile- phone chipmaker forecast revenue that trailed analysts' estimates. General Motors Corp. slipped on expectations the world's largest carmaker will report a September sales decline.

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JGB futures pull back from 6-1/2-month highs

September 25, 2006

From Reuters:
Japanese government bond futures slipped back after striking 6-1/2-month highs on Monday as domestic investors shied away from chasing the market higher despite a robust rally in U.S. Treasuries.

JGBs had gained along with Treasuries since the Philadelphia Federal Reserve's survey last week showed regional factory activity contracting for the first time in more than three years, stirring expectations the Fed's next move may be to cut rates.

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U.S. stock futures get lift as oil drops below $60

September 25, 2006

From MarketWatch:
U.S. stock market futures advanced Monday as crude-oil futures retreated below $60 a barrel, with news of a shake-up at Hewlett-Packard also providing support.

S&P 500 futures rose 3.90 points at 1,329.80 and Nasdaq 100 futures rose 8 points at 1,649.00. Dow industrial futures were up 35 points at 11,628.

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CBOE to Launch New Futures, Options

September 8, 2006

From MSN Money:
The Chicago Board Options Exchange said Friday it plans to launch options on the CBOE Exchange Index and futures on the CBOE S&P 500 BuyWrite Index.

The Chicago-based U.S.-options exchange said it will launch the options on the Exchange Index, or "EXQ," which is based on the stock prices of publicly traded U.S. exchanges, on Sept. 19.

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US stock futures rise as oil slips to 5-month low

September 8, 2006

From Reuters:
U.S. stock futures pointed to a rebound on Friday after two consecutive days of losses, with steadily declining oil prices seen offsetting inflation fears roused earlier in the week.

Oil fell to a new five-month low under $67 on Friday after U.S. fuel supplies rose sharply and BP (BP.L: Quote, Profile, Research) said it might be able to restore its Alaskan oil field sooner than expected.

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U.S. Stock-Index Futures Rise as Oil, Natural Gas Prices Drop

August 29, 2006

From Bloomberg:
U.S. stock-index futures gained as oil and natural-gas prices dropped for a second day, easing economic concern before a report on consumer confidence.

Wal-Mart Stores Inc., the world's largest retailer, advanced on the prospect spending will keep the economy growing. Boeing Co., the No. 2 commercial-aircraft maker, rose on a plan to repurchase as much as $3 billion of its shares.

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Managed futures grew 11% in Q2

August 17, 2006

From InvestmentNews.com:
Money under management in managed futures grew nearly 11% in the second quarter, according to the Barclay Commodity Trading Advisor Index, which is published by The Barclay Group.

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Crude oil futures fall

August 16, 2006

From The Sydney Morning Herald:
US crude oil futures ended lower on Tuesday as a truce between Israel and Lebanese Hizbollah guerrillas held for a second day.

In late trading, traders squared books ahead of Wednesday's government inventory data forecast to show drawdowns in crude and gasoline supplies and a seasonal build in distillates.

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Stock futures rise after CPI report

August 16, 2006

From Reuters:
U.S. stock futures jumped on Wednesday as a tame increase in core consumer prices may support the view the Federal Reserve has room to keep interest rates unchanged in the short term.

Prices excluding food and energy rose less than expected in July and followed a weaker reading on producer prices on Tuesday that sparked a rally in stocks.

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Nymex energy futures in retreat

August 8, 2006

From Monsters and Critics:
Traders at the New York Mercantile Exchange sold off their energy positions Tuesday, lowering the price of high-quality crude oil to $76.45 per barrel.

The 53-cent decline was accompanied by a 6-cent fall in natural gas to $6.848 per million Btu.

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Stock futures gain before Fed rate decision

August 8, 2006

From Reuters Canada:
U.S. stock futures climbed on Tuesday as investors were betting the Federal Reserve would pause in its two-year monetary tightening cycle at a meeting later on Tuesday.

A spurt of deals also made investors more optimistic.

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U.S. Stock-Index Futures Rise on Earnings; Apple Shares Gain

July 20, 2006

From Bloomberg:
U.S. stock-index futures advanced after earnings from Apple Computer Inc. and Motorola Inc. boosted speculation that profit growth will be sustained.

``Earnings growth remains very solid,'' said Johan Van Der Biest, who manages $1 billion in U.S. equities at Dexia Asset Management in Brussels. ``Negative guidance has been priced into stocks. We expect earnings growth of between 10 and 15 percent this year.'' 

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Stock futures rise, thin trade expected

July 3, 2006

From MSN Money:
U.S. stock futures gained on Monday, indicating an opening rise on Wall Street, but volumes are set to be low with trading ending early before Tuesday's U.S. Independence Day holiday.

Inflation is still the main focus as the market starts the third quarter, with the earnings season yet to kick into gear. The ISM's June manufacturing report will be released at 1400 GMT while the key June non-farm payrolls report is due on Friday.

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S&P's hedge fund indexing foray goes awry

June 29, 2006

From MarketWatch:
Standard & Poor's, which runs some of the world's most widely followed equity indexes, hasn't fared as well in its efforts to track the performance of hedge funds.

S&P said earlier this week that it will stop publishing its investable S&P Hedge Fund Index because a decline in the number of managers tracked by the benchmark no longer makes it representative of the broad range of strategies in the industry.

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Swiss shares higher midafternoon on US futures, led by insurers

June 28, 2006

From Forbes:
Share prices were higher in thin midafternoon trade, tracking other European equity markets and positive US futures and led by insurance stocks, traders said.

At 3.01 pm, the Swiss Market Index was up 33.05 points at 7,439.88, and the Swiss Performance Index up 13.38 points at 5,790.61.

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U.S. Stock-Index Futures Gain Before Fed Meeting; Biomet Rises

June 28, 2006

From Bloomberg:
U.S. stock-index futures advanced on speculation economic and earnings growth is strong enough to overcome more interest-rate increases from the Federal Reserve.

Well Fargo & Co. and Biomet Inc., a medical-device company, rose after they both raised dividends. Warner Music Group may be active after EMI Group Plc raised its offer for the U.S. company to $4.6 billion as it rejected a counterbid.

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He wants to take you back to the futures

May 30, 2006

From The Age:
BRIAN Price knows a lot about greed and revenge.

He thrived amid the "gangland warfare and manic chaos" of the trading floor of the Sydney Futures Exchange in the 1980s.

He wrote about it in the original story for Robert Connolly's 2001 film, The Bank, the tale of a young market trader who seeks revenge for the repossession of his father's farm.

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New Milestone in Hedge Fund Transparency Achieved

May 16, 2006

From Yahoo! Finance:
Hedge fund transparency has taken a giant leap forward as HedgeFund.net (HFN) has achieved the participation of 6,000 current hedge fund, fund of fund and Commodity Trading Advisor (CTA) products in its proprietary alternative investment database. This new milestone has been achieved amidst a favorable climate for hedge fund transparency created by growing institutional interest in hedge funds and the demand by these investors for a consolidated source of information. As many of the world's leading institutional investors access the HFN database for information, more alternative investment firms are finding that feeding information on their funds to HFN is an important part of communicating with investors.

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Managed futures hedge funds come top in April -FTSE

May 9, 2006

From Reuters:
Managed futures hedge funds, which trade stock, bond, commodity and currency markets using buy and sell signals from computer models, were top performers in April, FTSE Research said on Tuesday.

Managed futures funds, also known as commodity trading advisers, returned an indicative 2.9 percent in April, matching the March number. For the first four months of this year, they are up 5.2 percent.

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Fed fund futures pricing in lower chance of June rate hike

May 5, 2006

From MarketWatch:
The fed funds futures market is now pricing in a lower chance that the Federal Reserve will raise interest rates in June, following a weaker-than-anticipated jobs growth in April. The market continues to price in a 100% chance of a quarter percentage point interest rate hike following the Fed's monetary policy setting meeting on May 10, but is now pricing in a 32% chance of another quarter-point hike after the late-June meeting vs. a 44% chance on Thursday...

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Oil futures gain, but are poised for weekly loss

May 5, 2006

From MarketWatch:
Crude-oil futures climbed above $70 per barrel Friday, but were poised to tally a loss of more than 2% for the week as anxiety over Iran and other trouble spots fueled concerns about global production, but a U.S. government report eased worries about domestic petroleum supplies.

Crude for June delivery was last up 11 cents at $70.05 a barrel on the New York Mercantile Exchange. It traded between a high of $70.55 and a low of $69.70.

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U.S. stock futures jump after April jobs number

May 5, 2006

From Reuters:
U.S. stock index futures jumped on Friday after a weaker-than-expected payrolls report calmed worries that the Federal Reserve would have to raise interest rates further than previously expected.

The Labor Department said the U.S. economy added 138,000 jobs in April, compared with a forecast of 200,000.

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ABN Amro Futures to collaborate with Trading Technologies

May 4, 2006

From Computer Business Review Online:
The advisory and brokerage services company ABN Amro Futures has signed a global licensing contract with trading software developers, Trading Technologies. Terms were not disclosed.

Headquartered in Chicago, TT claims to provide futures trading systems that net as much as half of all electronic volume at the four main daily future exchanges. They have signed several licensing deals with various providers over recent years.

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Funds of hedge funds eyeing stocks

March 14, 2006

From The Daily Times:
Funds of hedge funds expect to make solid profits over the next two quarters, with Japanese and US stocks seen as particularly good investments, a Reuters poll shows.

The Reuters survey of 10 funds of hedge funds, which together manage some $74 billion, forecast average returns in the next three to six months.

Funds of hedge funds spread their money between hedge fund strategies to diversify their portfolios and minimise risk. Funds were slightly more optimistic about expected returns across a range of strategies compared with the last quarterly poll in December.

The survey showed funds allocating the biggest part of their money an average of 36.5 percent in the second quarter of 2006 to the long/short strategy, which buys stocks seen as cheap and short sells those that are expensive.

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Finnish Corporate Client Seeds the Global Titan Program of Tzanetatos Capital Management LLC

February 28, 2006

From dBusiness News Chicago:
A Finnish Corporation has invested seed capital of $1 million in a Managed Futures Account Program launch by Tzanetatos Capital Management LLC, a Chicago based emerging CTA and Member of the National Futures Association. Global Titan Original Program's principal investment objective is capital appreciation through speculative trading of commodity and financial interests.

The company did not disclose the name of its Finnish client.
The firm's trading program seeks to identify, leverage and trade positive as well as negative trends at the macroeconomic level on the domestic and global capital markets. The investment process applied is discretionary. It constitutes the synthesis of fundamental, macroeconomic, internal market dynamics, technical, quantitative and risk management analysis of capital market conditions to capitalize on price movements through the deployment of thematic driven strategies and to implement strategic and tactical allocation decisions. Trading program's risk parameters are also set within the context of overall portfolio exposure. Although the program is designed and could employ an arsenal of varied exchange and over the counter traded instruments which could include Foreign Exchange, Exchange Traded funds ("ETF'S"), Broad and Narrow Exchange traded indices, individual equities, swaps, options and fixed income, the emphasis is on trading listed financial futures, such as currencies, interest rates, indices, commodities and options in the major domestic and international futures and capital markets.

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Coming Soon to Your TV: Superfund

February 23, 2006

From BusinessWeek Online:
Like so many other people during the 1990s, Anthony Gordon bought an eclectic range of stocks and watched with amazement as his portfolio bulged. By 2000 he had holdings worth $1.8 million. "I was elated but unnerved. It didn't seem normal," says the photographer, who lives in a loft apartment in Manhattan's trendy SoHo neighborhood. Then the bubble burst, taking Gordon's tech- and telecom-heavy portfolio down to a value of $80,000 by 2001, a disaster that he blames on his broker.

"The guy told me I had the equivalent of a diversified mutual fund, but he didn't rebalance," Gordon says. Suddenly the market was no longer his friend. "I became cautious, weary, dubious, and concerned."

But not so cautious that his interest wasn't piqued two years later, when a fellow airplane passenger mentioned something called Superfund. Then he saw a cable-TV commercial in which a young man with a long, dark jacket and a clipped accent reminiscent of Arnold Schwarzenegger's said "Guten Tag." The man on the screen introduced himself as Christian Baha, the founder of Superfund.

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Lind-Waldock Launches LindPowerYourself!(TM) Campaign

February 21, 2006

From PRNewswire:
Lind-Waldock, one of the best known and most respected futures brokerages for individuals, this week launches its latest advertising campaign, LindPowerYourself!(TM), with spots on CNBC and MSNBC.

"This campaign focuses on power, both in terms of what a powerful investment tool futures can be for individual investors and how Lind-Waldock empowers individuals to use both financial and commodity futures through our cutting-edge trading platform, industry-leading education programs, and financial strength," said Mark Sachs, President of Lind-Waldock.

For the campaign, Lind-Waldock will be running television commercials on CNBC and MSNBC, print ads in The Wall Street Journal and other business publications, and banner ads on financial Web sites.

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Superfund Investment Group opens Middle East headquarters in Dubai International Financial Center

February 18, 2006

From AME Info:
The Superfund Investment Group, one of the world's leading managed futures fund provider with more than 50,000 clients, will open its first office in the Middle East in the Dubai International Financial Center (DIFC) having received its license from the Dubai Financial Services Authority (DFSA) to operate as an authorized firm in the Dubai International Financial Centre.

Superfund intends to offer its successful investment products to institutional and private investors in the whole region in the future.

Christian Baha, the founder of the Superfund Investment Group, states, 'Dubai has recently become one of the most attractive financial centers of the world. The Middle East is extremely important for the capital market, particularly for managed futures funds. We are pleased to work together with the Dubai International Financial Center, a significant partner which has already created a center for the entire capital market in the Middle East. We are planning to implement numerous activities for the whole region out of Dubai.'

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SAC Capital raising $3B for new fund

January 31, 2006

From MarketWatch:
When SAC Capital Advisors, a top-performing hedge fund run by Steven Cohen, started raising money for a new fund in December, many investors rushed to get in.

That's despite an annual management fee of 3%, a performance fee of 35% and a requirement that clients agree to have their money locked up for three years, according to two hedge fund investors who declined to be identified.

The new fund's performance fee is about twice the industry average, suggesting such charges remain stubbornly high as investors clamor for access to the best managers. Compared to mutual funds, the fees are huge: the typical U.S. equity mutual fund charges no performance fee and a management fee of about 1.5%.

The new SAC Multi-Strategy Fund, with a minimum investment of $25 million, has so far raised about $2.5 billion from about 50 investors and will likely pull in about $3 billion, the investors added. SAC Capital declined to comment.

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U.S. Stock-Index Futures Decline Before Fed on Altria Earnings

January 31, 2006

From Bloomberg:
U.S. stock-index futures declined after disappointing results from Altria Group Inc. and Goodyear Tire & Rubber Co.

Investors were also hesitant to bid shares higher before a meeting of the Federal Reserve, where policy makers' stance on future interest-rate increases will likely be revealed.

Standard & Poor's 500 Index futures expiring in March decreased 1.50 to 1287 as of 8:59 a.m. in New York. Dow Jones Industrial Average futures fell 13 to 10,905. Nasdaq-100 Index futures lost 0.50 to 1723. Shares of Google Inc. gained before the company releases earnings.

"We could have more interest-rate increases,'' said Jean Borjeix, a strategist with Oddo Securities in Paris and adviser to the company's money-management unit, which oversees about $12 billion.

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Finnish Corporate Client Seeds the Global Titan Program of Tzanetatos Capital Management LLC

January 30, 2006

From dBusinessNews Chicago:
A Finnish Corporation has invested seed capital of $1 million in a Managed Futures Account Program launch by Tzanetatos Capital Management LLC, a Chicago based emerging CTA and Member of the National Futures Association. Global Titan Original Program's principal investment objective is capital appreciation through speculative trading of commodity and financial interests.

The company did not disclose the name of its Finnish client.
The firm's trading program seeks to identify, leverage and trade positive as well as negative trends at the macroeconomic level on the domestic and global capital markets. The investment process applied is discretionary. It constitutes the synthesis of fundamental, macroeconomic, internal market dynamics, technical, quantitative and risk management analysis of capital market conditions to capitalize on price movements through the deployment of thematic driven strategies and to implement strategic and tactical allocation decisions. Trading program's risk parameters are also set within the context of overall portfolio exposure. Although the program is designed and could employ an arsenal of varied exchange and over the counter traded instruments which could include Foreign Exchange, Exchange Traded funds ("ETF'S"), Broad and Narrow Exchange traded indices, individual equities, swaps, options and fixed income, the emphasis is on trading listed financial futures, such as currencies, interest rates, indices, commodities and options in the major domestic and international futures and capital markets.

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PFG's Fourth CTA Challenge Begins March 1, 2006

January 30, 2006

From Business Wire:
Peregrine Financial Group, Inc. (PFG) begins its fourth CTA Challenge on March 1, 2006. This is a competition to identify and showcase emerging Commodity Trading Advisor (CTA) talent, strategies and techniques.

Each CTA Challenge will last three months, with new quarterly Challenges beginning on June 1, September 1 and December 1, 2006. The winner of each quarterly Challenge, based on risk-adjusted return, will be awarded the opportunity to trade a $250,000 managed account for PFG. This sizable allocation will help further establish the track record for the CTA. At the conclusion of the full year, the first- and second-place winners from each quarter are invited to participate in a six-month CTA Championship Showdown from March 1 to August 31, 2007; the winner from this field of eight CTA finalists will be given the opportunity to trade a managed account of $1 million for PFG.(1)

Entrants trade their own strategies. This is a live trading event, created to further PFG's strategic movement into the managed futures arena.

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New income products rule the day

January 21, 2006

From Globe And Mail:
Another year, another display of raw power by mutual funds that provide income using dividend stocks, income trusts, bonds and such.

Income funds produced excellent returns in 2005, and sales that were beyond excellent. No wonder the investment industry has been like an assembly line in churning out new products in this category. Let's catch up with some of them.

The most novel new product is a closed-end fund from Toronto-based hedge fund company BluMont Capital Inc., which according to its preliminary prospectus, will yield 6 per cent based on an issue price of $10 and a planned monthly distribution of 5 cents a unit, or 60 cents annually. Closed-end funds are essentially mutual funds that are bought and sold like a stock.

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Trade Center, LLC Launches New Managed Futures Information Site

January 17, 2006

From PressReleaseNetwork.com:
A completely free, and easy to navigate web site has been launched by Trade Center that allows investors to get information and rankings of Commodity Trading Advisors (CTA’s) in a flash. Requiring just a simple sign up, users can see reports on over six hundred CTA’s sorted in a variety of ways. Trade Center, a commodity brokerage firm headquartered in Aliso Viejo, California specializes in offering asset diversification services via the use of managed futures and CTA’s. Online now, this site was created with the investor in mind. Joe Tapias, CEO of Trade Center said, “We wanted to create a place where investors could go and gather information in a non-sales environment. We didn’t want to present all the clutter of traditional brokerage firms’ web sites.” The site is clean, pleasing to the eye and is all about getting useful information in the hands of alternative investors.

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PFG Names Herb Kral to Enrich Managed Futures Business

January 11, 2006

From Business Wire:
Peregrine Financial Group, Inc. (PFG), in a move to speed its growth in managed futures, has appointed Herb Kral to expand its efforts in this product sector. As Director of Managed Futures within PFG's Managed Futures Division, Kral brings experience in satisfying high net worth clients. His track record of success lies in matching advice-seeking investors with appropriate trading systems, Commodity Trading Advisors, and managed futures products that fit their specific demands.

"Some of the differences that PFG stands for in the marketplace include true customer service, customer-driven technologies and a solid and long-time passion for investor and trader education. Herb has been a dedicated and successful consultant to a loyal group of clients who maintain equity accounts of multi-million dollars. At the same time, he has implemented dozens of new product offerings they can build into their strategies. His ability to generate new business stems directly from his integrity in serving customers, attracting new CTAs, and identifying new trading systems. The combination of talent and energy he brings will provide additional opportunities for his sales group at PFG and for existing and new customers. Herb is a dynamic leader and we welcome him to PFG" said Russ Wasendorf, Sr., PFG's CEO.

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A Refco Creditor Stormed Offices To Get Money Back

January 11, 2006

From The New York Sun:
Two days before Refco Incorporated's unregulated brokerage business froze its customers' accounts, a client with ties to Refco's top executives stormed into the unit's New York office and hectored employees into returning $312 million, the employees say in court documents.

The client, Christopher Sugrue, is chairman of PlusFunds Group Incorporated, a fund manager that promises investment returns that track the performance of several hedge funds. His actions in the days after an accounting scandal erupted at Refco last October are now the focus of a lawsuit has rattled several hedge funds.

The lawsuit, filed by Refco's unsecured creditors in U.S. Bankruptcy Court in Manhattan, seeks the return of the $312 million to Refco Capital Markets. It asserts Mr. Sugrue's conduct was "inequitable," and that Plus-Funds gained an unfair advantage over other RCM creditors.

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Hedge Fund Transparency Increasing, According to Strategic Financial Solutions LLC 2005 Hedge Fund Database Study

January 5, 2006

From eMediaWire:
Strategic Financial Solutions, LLC, (SFS) creator of the world’s leading asset allocation and investment analysis software, the PerTrac Desktop Analytical Platform, is pleased to present the aggregate results of the 2005 SFS Hedge Fund Database Study, an annual report that aims to shed additional light on the hedge fund industry.

One of the most interesting findings of the 2005 Hedge Fund Database Study was that, after combining all 12 databases and integrating the funds identified in the 2004 study, there were nearly 41,000 records across all databases, a jump of more than 16,000 hedge fund entries from last year. While clearly there has been healthy growth in the hedge fund universe since our last report, these numbers indicate great effort and improvement in fund data collection on the part of hedge fund databases. In fact, looking only at funds with start dates between 1990 and 2003 and adjusting for duplicate records, we saw an increase of approximately 870 single manager hedge funds and 630 funds of hedge funds, for a net increase of 1,500 funds. Indeed, it is safe to say that the quantity of hedge fund data available to investors increased dramatically in 2005, although, as we found in prior years’ studies, in order to get more complete hedge fund coverage, it is imperative to subscribe to more than one database.

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Does Size Matter in the Hedge Fund Industry?

January 2, 2006

From MENAFN.com:
It is often claimed that smaller hedge funds outperform their larger rivals and that funds perform best in their early years, but is this truly the case?

A large body of research in hedge fund databases shows that start-up funds outperform established funds in the first 18 months or so of their existence. Many industry experts also argue that smaller funds tend to be more aggressive than their rivals and thus produce higher returns, though there is less verifiable evidence to support this claim.

Database Bias

The problem is that most of these assertions are based on hedge fund databases and these do not provide a perfect insight into the industry.

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