Managed Futures Assets Decline 1% in 2005, Barclays Reports

Managed Futures assets declined 1.06% in 2005 according to The Barclay Group, which provides managed futures and hedge fund data. Money under management slid from $131.9 billion to $130.5 billion during 2005, but is still well above historical levels. Five

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Managed Futures assets declined 1.06% in 2005 according to The Barclay Group, which provides managed futures and hedge fund data.

Money under management slid from $131.9 billion to $130.5 billion during 2005, but is still well above historical levels. Five years ago, CTAs managed just $37.9 billion, and ten years ago the figure was $22.8 billion.

“Although the Barclay CTA Index gained 1.7% in 2005, its performance was well below the long-term historical average of 12.7%,” says Sol Waksman, president of The Barclay Group. “During past periods of underperformance, decreases of 6 to 8 percent in assets under management were not uncommon. A one percent decline in assets is quite small for this historically active sector.”

The Barclay BTOP50 Index, which measures the performance of the largest CTA’s, gained 2.46% in 2005.

“Given the relative underperformance by CTAs, I believe that this small decline in assets is largely a reflection of continued investor confidence in the sector,” Waksman predicts. “Over time, investors have been drawn to the managed futures sector as much for the diversification benefits as for the profit potential.”

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