Commodities & Resources

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CTA’s 'positively skewed' performance helps reduce tail risk in a diversified hedge fund portfolio

CTA’s 'positively skewed' performance helps reduce tail risk in a diversified hedge fund portfolio

By Don Steinbrugge, Agecroft Partners – Commodity Trading Advisers (CTAs) are one of only a few hedge fund strategies that performed well throughout the market selloffs of 2000-2002, 2008 and 1st Q of 2020. Yet, investor’s perception of the strategy is more divergent than any other major hedge fund strategy. 

Commodities

Oil hedge funds remain cool on further price surges

Oil hedge funds remain cool on further price surges

– Uncertainty still looms for commodities-focused strategies as Middle East tensions resurface – 

The deadly missile strike against Iranian general Qassem Suleimani at Baghdad Airport on 3 January elevated oil prices amid immediate concerns over renewed conflict in the region. Brent Crude surged to more than USD70 a barrel following the attack, and prices stayed above USD68 early last week, before falling back to just under USD65 on Monday.