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Tag Archives: CTA

JLN Managed Futures: CTA/CPO Capital Requirements; Manning & Napier, Inc. Announces Acquisition of 2100 Xenon ; Carry Trade’s Return Managed Futures,Newsletter

Observations / Statistics / Commentary HFT in the CrosshairsDoug Ashburn, John Lothian News When Michael Lewis’ “Flash Boys” hit the bookshelves a couple weeks ago, it was as if a giant HFT target had been placed on the shooting range. Since then, the calls for HFT curbs, taxes, and other regulation have become increasingly shrill. While John Lothian News has been saying for years that the equity market structure is broken and in need of a fix, too much of the current narrative is based on misinformation and partial-truths, and its chief critics have consistently, if not willfully, misrepresented the…

Home Run: Don Davis Talks About Peer-to-Peer Investments Managed Futures,Video

The US financial crisis has wreaked havoc for the past several years on the mortgage lending business, not to mention many homeowners and debtors. It also has created opportunities for innovative firms that are looking for new ways to help debtors and make a nice return at the same time. Don Davis, president of Novus Investments sat down with Jim Kharouf, editor-in-chief of John Lothian News, to talk about how his firm is profiting from the ongoing fallout from the mortgage crisis and the rise of peer-to-peer lending, at the Emerging Manager Forum in Miami in December. Davis, a CTA,…

Connecting the Dots Commentary,Managed Futures

John Lothian

My friends at the National Futures Association asked me to connect the dots about my new managed futures newsletter offering from John J. Lothian Managed Futures, LLC. So here goes. I am going to publish a daily newsletter with the trading signals from the Maple Sugar trading program that is listed in the disclosure document of John J. Lothian Managed Futures, LLC (see the disclosure document at johnlothian.com/cta). This is the same program that was offered and traded with real customer funds by John J. Lothian & Company, Inc. from 2004 to 2011 when it was registered with the NFA…

Managed Futures Gets Bloomberged, 3.0: Starting Over From the Beginning Commentary,Managed Futures

John Lothian

One way to start a CTA business is by writing a newsletter and giving away your trading ideas and signals.  Once you build a large enough audience, you start to charge a monthly fee for your service.  Once you get enough people willing to pay for your service, you announce you will no longer be offering it as a newsletter, but will be offering it as a money management product. This is what I intend to do. Read Part 1 here. Read Part 2 here. I have the company set up, John J. Lothian Managed Futures, LLC (“JJLMF”).  It is…

Managed Futures Bloomberged, Part 2.0: Starting Over From the Beginning Commentary,Managed Futures

John Lothian

I became a CTA in part because Jon Matte did not want to charge fees to his clients that he felt he did not deserve.  Jon was running Defender Capital Management and had taken the management fee off his managed futures program because a change in the markets caused his system to not trade as actively as it should have.   Defender had a 30-year bond futures trading program he launched in 1999 and was one of the most successful CTA trading programs I had tracked for the last three years as of July 2001.  I was a broker at…

Managed Futures Bloomberged, Part 1 Commentary,Managed Futures

John Lothian

Wow!  That was quite the trashing of managed futures in a Bloomberg story by David Evans on Tuesday.  The Gawker website took the story about managed futures to new depths with this headline: “Here Is Perhaps the Single Biggest Ripoff on Wall Street” If I was selling junk bonds, penny stocks, stock loans, reverse mortgages, or synthetic collateralized debt obligations, I would be feeling pretty good right now.  Those managed futures charlatans are the new bad boys of Wall Street.  Yeehaa! Having been a commodity trading advisor for nearly a decade, I found the article appalling on multiple levels.  On…

JLN Managed Futures: Is the great correlation over?; Billions of dollars wasted on investment advice; CTAs head for third year of losses Managed Futures,Newsletter

Strategists at a recent conference in Chicago declare an end to “the great correlation.” Pension funds are apparently wasting billions of dollars a year on “worthless advice” according to a story in the Financial Times. And the bad news keeps coming for the managed futures sector in terms of returns. Leading off the newsletter, though, is a fresh look at trend following from Thomas Rollinger of Red Rock Capital.

Thomas Rollinger of Red Rock Capital Explains the Trouble with Trend Following and Why He Likes Sortino Ratios Interview,Managed Futures,Tech / HFT,Video

Tom Rollinger

Thomas Rollinger has a unique perspective on the markets. As the managing partner and chief investment officer of Red Rock Capital, Rollinger joined the managed futures firm in March after being a long-time customer of the firm. But Rollinger also has an interesting background, as a student and colleague of Edward O. Thorp, who is also known as the “godfather of quants.” Rollinger co-developed and co-managed the systematic futures strategy which Thorp called “System X,” which was featured in Scott Patterson’s “The Quants” and well as in Jack Schwager’s book “Hedge Fund Market Wizards.” Rollinger now works alongside Red Rock’s…

JLN Managed Futures: Bond-King Pimco Plans to Push ‘Alternative Funds’; Moore Capital settles platinum, palladium lawsuit; High-frequency trading does not raise futures volatility Managed Futures,Newsletter

Observations – Statistics – Commentary The bond-bigwigs at Pimco are apparently coming to the managed futures world, according to the Wall Street Journal. This despite the fact that 2013 has been another disappointing year thus far. Moore Capital paid $48 million to settle accusations of market manipulation – but was Mr. Bacon’s firm simply a victim of circumstance, in that it has been just too big a fish for the small platinum and palladium ponds? A study just released by two Vanderbilt professors has created quite a buzz in the futures industry. Leading off the newsletter, due diligence expert Leigh…