Investment Approach

At CTA Concept Funds Limited it is our primary goal to find reliable managers with persistent high-quality risk-adjusted returns for our Funds. We measure our success against common investment benchmarks and the products of our peers.

With the benefit of hindsight, it is an easy task to create a CTA portfolio that performed well in the past. The real challenge is to create a CTA portfolio for tomorrow, when the market environment is unknown. This requires knowledge, experience and hard work.

CTAs use different inputs, methodologies, timeframes and market coverage. This implies that the trading programs of different CTAs will typically not perform in unison under most market conditions.

We are categorizing types of managers and types of market conditions. And we are looking at how a CTA handles different market situations. For the identification of this fingerprint for a CTA an in deep quantitative analyses of the trackrecords is an important issue.

Last but not least we take qualitative aspects into our consideration for the selection of a CTA. In our due diligence we examine the CTA as a person (integrity, reliability, experience), its organizational structures, process (clarity and consistency of investment/trading approach/process, risk management, discipline, rationality, consistency, edge), transparency and reputation.

Patience, discipline and a focus on consistent above-average medium- to long-term returns therefore represent key elements of our philosophy.

Our investment approach is driven by hard facts. But we are convinced that in the long run a successful cooperation with a CTA must be based on an overall reliability.