CTAs Blitzed by A Trio of Problems: China, Metals and Japan

This does not come as a surprise, the doom of commodity trades and hedge funds was written quite a while ago and all or at least most of the blame for their underpeformance goes to China. The much publicized end of the commodity cycle and pressured conditions in the metals and mining sector has pulled commodity traders to their knees. To add further insult to injury, CTAs appeared to take a steep fall as Japan went haywire in May when the Fed dropped hints of stemming bond purchases. FT reports that on average a CTA lost 8 percent in last month. Japan and the Fed's hints of tapering have...