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Managed Futures – Money managers cut their net-long positions in Chicago Board of Trade corn futures, government data showed Friday, as investors abandon long positions on slowing demand and improved crop weather.
Broader risk aversion across many asset classes enticed fund managers to trim their long positions in the market as well.
Money managers were net-long 61,493 corn contracts, down 44% from the prior week, according to data from the Commodity Futures Trading Commission.
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Managed Futures – Emil van Essen, LLC announced that its flagship Spread Trading Program was nominated for four Managed Futures Pinnacle Awards in the following categories: Best Bear Market Manager (HF Index), Best Defensive CTA (Diversified), Best Risk Adjusted Performance (Diversified), and Greatest Returns (High Volatility – Diversified). Award winners will be announced and presented with a BarclayHedge “BTOP” award during a ceremony on June 11, 2012, in Chicago.
“We continue to see strong growth in long-only commodity funds for the foreseeable future, which is providing us with favorable market conditions for alpha generation.”
“We are honored to be nominated for the inaugural Managed Futures Pinnacle Awards sponsored by CME Group and BarclayHedge,” said Emil van Essen, CEO. “We continue to see strong growth in long-only commodity funds for the foreseeable future, which is providing us with favorable market conditions for alpha generation.”
Emil van Essen, LLC has grown from $210M assets under management in 2011 to over $440M in 2012. The Emil van Essen Spread Trading Program has outperformed both the Barclay CTA Index and Goldman Sachs Commodity Index for the last 4 years.
About Emil van Essen, LLC:
Emil van Essen, LLC is a Chicago, Illinois based investment management firm that specializes in commodity spread trading.
Managed Futures – The returns on this commodity-trading strategy don’t look good — they look spectacular. The average managed-futures program, as measured by the Barclay CTA Index, was up 14% last year — beating the stock market by a staggering 51 percentage points. Run by commodity-trading advisers, or CTAs, these funds manage an estimated $199 billion and may traffic in anything from corn, cotton and crude oil to interest rates, currencies and stock indexes. They often use technical analysis and mathematical formulas to trade on price patterns.
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Managed futures funds take advantage of trends in various options, futures, and currency markets to weather choppy markets, writes Dave Kavanagh. He also explains how his managed futures fund-of-funds can also capitalize on both sides of the market, by going long as well as short.
Listen to the complete interview here.
Kate Stalter: Today, I am pleased to be speaking with Dave Kavanagh of the Grant Park Fund (GPFAX).
Dave, we spoke back in January, when the first-quarter rally in the equity markets was just beginning to get under way. We’re four months into the year right now. How would you characterize the place of managed futures in a portfolio at this juncture?
Dave Kavanagh: Well, if investors have been patient, they’ll stick with the allocation to managed futures. I think it’s done what it’s supposed to have done in, the sense that when we look at a program, one of the things that we try to insist on, or at least try to capture, in times of economic stress—especially in the equity markets—is that we offer protection.
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Commodity Brokers – CME Group Inc. (CME), the world’s largest futures exchange, is raising futures margins for non-hedged accounts from May 7 to comply with new regulations.
Members will be treated as speculators for outright positions, paying a higher margin, said the exchange, which trades everything from energy, agriculture and metals to interest rates and equity indexes. Members are currently treated as hedgers rather than speculators even if they are entering into a speculative position.
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Managed Futures – Vulpes Investment Management, the Singapore company set up by hedge-fund manager Stephen Diggle, plans to raise as much as $150 million over the next few months for a fund that invests in farms around the world.
The $35 million Vulpes Agricultural Land Investment Company, which has a cattle and sheep farm in Uruguay, two corn farms in Illinois, and a New Zealand kiwi-and-avocado orchard, is seeking to raise at least $50 million in the next couple of months to expand investments into Africa and Eastern Europe, Diggle said.
Once Singapore’s biggest hedge-fund manager at Artradis Fund Management Pte, Diggle is allowing outsiders access to the investments run by his family office as he seeks assets that can counter inflation. His farmland portfolio has had a yield of about 5 percent since Diggle began buying land in 2009, with land price appreciation of about 35 percent, as an increase in wealth drives demand for a broader range of food, he said.
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