The CTA benchmark is in negative territory for the fifth month in a row and 2013 is set to be the worst performing year for CTAs, according to recent Preqin report.
Preqin’s report, however, points out that the outlook is not entirely gloomy as there is still investor appetite for CTAs.
Preqin’s report notes the number of new entrants to the CTA industry has been declining slowly since 2011. The industry recorded 204 launches in 2011, while so far in 2013, Preqin’s hedge fund analysts could track only 104 CTA launches. The report points out if the trend continues, 2013 could well witness the lowest number of launches post-crisis.
The following graph highlights the...

