The Role Of A CTA, Commodity Trading Advisor
Today’s
Commodity Trading Advisor is no longer to be thought of only as a Portfolio
Manager. His role has expanded
considerably as investment products become more complex.
Commodity Trading Advisor, Genuine Trading
Solutions, a registered CTA with the CFTC, Commodity Futures Trading
Commission, says the role today of a CTA is constantly evolving.
Dwayne Strocen, President of Genuine
Trading Solutions says once upon a time a Commodity Trading Advisor was content
to be known as a Portfolio Manager trading commodities and futures for a
managed futures fund. As today’s
investor becomes more sophisticated and today’s selection of investment
products becomes ever more complex and varied, the need for the CTA to
diversify becomes even more acute.
So what exactly is the role of today’s
CTA. Certainly trading of derivative
products for a managed futures fund continues to be as important as
before. A CTA has also become more
involved with derivative analytics.
This role is essentially focused upon becoming an analyst to structure
and analyze the more multi-faceted requirements demanded by hedge funds ,
pension funds and structured products.
The use of derivative analytics to manage
the adverse risk of an equity or bond portfolio brought about by adverse market
conditions is critical in preserving asset growth. The uses of hedging to prevent volatility has long been
understood by the largest institutions but is now available to the smaller
sized company and to the individual investor.
No doubt as products continue to evolve so to will the CTA evolve to
meet the need of today’s professional money manager. Company website: http://www.genuineCTA.com/
About the author
investment career in 1988 as a retail broker with Richardson
Greenshields of Canada, and later RBC Dominion Securities. His
background includes experience as a high frequency quantitative
trader. Being a trader for hedge funds located in Off-Shore
jurisdictions was where he learned the intricacies of working with
international institutions and understanding the benefits associated
within these jurisdictions. Website: http://www.genuineCTA.com/
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