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FAIRFIELD, Iowa, August 16, 2006 - Money under management in Managed Futures grew from $135.0 billion to $149.5 billion during the second quarter of 2006, according to The Barclay Group.
"It's a little surprising to see a $14.5 billion jump in assets at a time when managed futures returns have been lackluster," says Sol Waksman, president of The Barclay Group.
"One factor contributing to this rise in assets is the increased interest in commodities," says Waksman. "Investors are also responding to a growing recognition of the portfolio benefits garnered from diversification."
The Barclay BTOP50 Index, which measures the performance of the largest CTAs, was down 0.35% in Q2 of 2006. The broader Barclay CTA Index gained 1.56%.
"Some of the largest CTA firms, such as Campbell, Bridgewater, and Winton, have recently announced that they have closed selected programs to new investments. Campbell has closed its Financial, Metals, and Energy Program, Bridgewater has closed Pure Alpha, and Winton has closed its Diversified Program. All other investment programs at these firms remain open."
During the past 12 months, money under management has increased by 17.62%, from $127.1 billion to $149.5 billion.
"Five years ago, CTAs managed $37.1 billion in assets, or about 25 percent of today's total," says Waksman. "Liquidity in the underlying futures markets has continued to increase, and investor capital has kept flowing into the managed futures sector."
Click here to view 27 years of Barclay CTA Index data.
Sol Waksman is an experienced media source, providing perspectives on hedge fund and managed futures trends. Call 641-472-3456 or email sol@barclayhedge.com for more commentary or background.
The Barclay Group, founded in 1985, actively tracks more than 5,500 hedge funds and managed futures programs. Barclay has created and regularly updates 18 proprietary hedge fund indexes and eight managed futures indexes. Institutional investors, brokerage firms and private banks worldwide utilize Barclay's indexes as performance benchmarks for the hedge fund and managed futures industries.
