Worst Hedge Funds – Trend Following Commodity Trading Advisors & Managed Futures
Are you a contrarian or do you follow the crowd? If one was to look at the worst performing Hedge funds for this year, they will find Trend Following Commodity trading Advisors & Managed Futures. Legends such as Tudor show up on this list. Tudor’s fund Tudor Tensor is in his 3rd year of sub performance. This underscores my point. There are no gurus or magical systems.
Trend Following is never easy. It is fraught with consistent loses and durations of draw downs. The key of successful investment success is to “try” to keep the losses small…however anything can happen. As much as past performance is not indicative of future performance….the sub performance of managed futures might lead one to be a contrarian. We are only dealing in uncertainty…However in all of my years of trend following ( and this has been one of the toughest)…I strongly doubt managed futures will stay in the subpar category….again…Anything can happen…but I am willing to take this bet.
Past performance is not indicative of future performance