Managed Futures http://www.uncorrelatedinvestments.com/blog/ Mark Melin's Industry Insider blog en-us Beware Non-GAAP Accounting Standards http://www.uncorrelatedinvestments.com/blog/?p=526 2014-01-14 By Mark Melin, published on ValueWalk.com The practice of companies using their own, non-GAAP accounting standards to spin earnings is nothing new.  But did last week a statement from Target Stores go too far?  The Minneapolis-based retailer’s spokesman Eric Hausman was quoted as saying it wi... Update on Short Ten Year / Taper Trade and New Gold / Currency Trade In Works http://www.uncorrelatedinvestments.com/blog/?p=518 2013-12-26 This article addresses the yield curve trade that recommended a short position in the Ten Year Note going into the Federal Reserve taper announcement and also tees up a new relative value trade in gold / silver vs a small basket of currencies selected based on their levels of debt. Yield Curve Tr... Trade Recommendation: Predicting the Taper Wasn't The Key Component of This Trade http://www.uncorrelatedinvestments.com/blog/?p=515 2013-12-20 The goal of this article is to explain the volatility yield curve trade to a certain degree.  I know this might sound odd, but the trade was not entirely predicated on accurately predicting the taper even thought that is what occured.  I will explain why in an article on Monday, but understand tha... Don't Be Surprised By Clear Taper Talk From Bernanke For Reasons Other Than Jobs Numbers http://www.uncorrelatedinvestments.com/blog/?p=507 2013-12-18 On the eve of the Federal Reserve Chairman Ben Bernanke presiding his last Federal Open Market Committee meeting, which wraps up this Wednesday with a press conference, a growing number of hedge fund traders who operate along the yield curve are anticipating Bernanke to announce the beginning of the... Yield Curve Trade Recommendation: Short Ten Year Note, Expect Rising Rates (Long Put Volatility / Short Call Volatility) http://www.uncorrelatedinvestments.com/blog/?p=505 2013-12-18 Expect interest rates to rise   Buy Five Debit Spreads: Buy: 120 June 2014 Put Option (0’59) Sell: 118 June 2014 Put Option (0’30) Purchase spread differential near 0’31 (assume 1 tick transaction cost / slippage on each side of the trade as the closing prices were a spread... Comparing CTA Indexes http://www.uncorrelatedinvestments.com/blog/?p=499 2013-12-15 In their recent white paper, “A Comparison of CTA Indexes,” Red Rock Capital principals Thomas N. Rollinger and Scott T. Hoffman compare the major CTA indexes.  Below is an excerpt of the paper’s primary thesis.  To view the entire paper, click here: A Comparison of CTA Indexes (Nov 2013) ... Managed Futures Indices Punch Into the Black as Fed Taper Appears Imminent http://www.uncorrelatedinvestments.com/blog/?p=495 2013-12-10 Major managed futures indexes punched into the black in November, with the Newedge CTA index up 1.62% following a 1.21% gain in October. Markets currently trending to the upside include the Dax, S&P 500, Japanese 10 year Government Bond, British Pound and Five year note and Eurodollar.  Mark... Blackstone / Codere CDS Event Highlighted on Daily Show Exposes Larger Economic Issues http://www.uncorrelatedinvestments.com/blog/?p=475 2013-12-06 A recent credit default swap (CDS) payout event, humorously highlighted by The Daily Show, actually opens a much larger issue, pointing to a core problem with unregulated OTC swaps whose notional value exceeds $600 trillion and dwarfs the world GDP by more than five times.  If any unknown event wer... Outgoing CFTC Commissioner Bart Chilton Makes Strong Statements Regardings http://www.uncorrelatedinvestments.com/blog/?p=468 2013-11-30 The Commodity Futures Trading Commission has been at the center of a fight to regulate the derivatives that were at the center of the 2008 crash.  This fight took center stage when CFTC Commissioner Bart Chilton recently gave what is arguably the most aggressive interview ever by a regulator.  Not... The shortfalls of Venture Capital: Why VC has to become a scientific investment discipline http://www.uncorrelatedinvestments.com/blog/?p=464 2013-11-19 By John Bhakdi When we think about Venture Capital (VC), we think about great entrepreneurs, secret deals, and the adrenaline rush of hitting the “next big thing”. Silicon Valley is in many respects the financial cousin of Hollywood: full of great successes, grand failures, of divas, heroes a... A CTA High on My Watchlist: Protec http://www.uncorrelatedinvestments.com/blog/?p=451 2013-11-11 Protec Energy is a fundamental relative value CTA who has generated consistent performance through a variety of difficult market environments for managed futures trend followers – 47% in 2010; 63% in 2011; 11% in 2012 and 17% year to date.  (Returns reported are from a direct managed account fall... AlphaMetrix Releases Statement Denying CFTC Allegations http://www.uncorrelatedinvestments.com/blog/?p=446 2013-11-06 In response to a CFTC civil suit against AlphaMetrix alleging fraud, the firm issued a statement denying the charges alleged in the suit and re-iterated it is fully cooperating to properly liquidate funds on the its managed accounts platform. The statement reads: On November 5, 2013, the Feder... AlphaMetrix to Engage in Orderly Fund Redemption, Conference Plans Still In Tact http://www.uncorrelatedinvestments.com/blog/?p=435 2013-10-30 AlphaMetrix released a statement saying the firm would begin orderly redemptions of client assets held on its managed account platform and a spokesperson said the firm will remain a viable entity. The statement reads: “In light of recent redemption requests, AlphaMetrix has determined that i... Exclusive: AlphaMetrix Source Expresses Optimism Firm Will Meet NFA Deadline, Pay CTA Fees; January Conference Still On Track http://www.uncorrelatedinvestments.com/blog/?p=433 2013-10-30 As a public deadline with the National Futures Association (NFA) approaches that could essentially end the firm’s business, a source inside AlphaMetrix expressed optimism the January, 2014 conference in Miami Beach will take place.  Further, this source considered it likely the firm will pay all ... Enforcement Action Could Hasten the End for AlphaMetrix http://www.uncorrelatedinvestments.com/blog/?p=422 2013-10-22 A recent Enforcement Action against AlphaMetrix by the National Futures Association (NFA) could hasten the firm’s path to bankruptcy. On October 21, the NFA issued a “Notice of Member  Responsibility Action” to AlphaMetrix which instructed the firm to pay $600,000 in fees owed to managed... Source: AlphaMetrix in Negotiation for Sale of Firm, But Bankruptcy More Likely Outcome http://www.uncorrelatedinvestments.com/blog/?p=414 2013-10-18  By Mark Melin   AlphaMetrix, the investment platform connecting primarily institutional investors with hedge funds and managed futures programs, has suspended paying performance and incentive fees to the funds on its platform and fired its Chief Financial Officer, according to a letter  da... Beat the Managed Futures Benchmarks? Not so fast... http://www.uncorrelatedinvestments.com/blog/?p=404 2013-10-18 The following article is excerpted from the upcoming Opalesque Futures Intelligence By Lorent Meksi When investing in managed futures, how easy is it to beat the benchmark?  Every investment is judged on how well it does not only on an absolute basis, but also relative to a benchmark. I... KPMG’s Chief Economist / Alternative Investments Addresses Fed Exit Strategy, Coming Bond Market Volatility and Challenges to the US as World Reserve Currency http://www.uncorrelatedinvestments.com/blog/?p=393 2013-10-16 Constance Hunter, KPMG's Chief Economist / Alternative Investments, is known in economic circles for her insight into transitional trends and fundamental market shifts.  We caught up with her to discuss her outlook in regards to some of the significant economic issues that could impact trading ... AlphaMetrix Issues Statement to Quell Rumors http://www.uncorrelatedinvestments.com/blog/?p=391 2013-10-11 As rumors swirl regarding the potential downfall of a significant player in the alternative investment arena, with concerns regarding customer segregated funds paramount in light of the MF Global and PFG scandals, AlphaMetrix releases a statement  that aims to re-assure that all segregated funds ar... AlphaMetrix Encountering “Significant Cash Flow Issues” According to Firm http://www.uncorrelatedinvestments.com/blog/?p=383 2013-10-11 Alphametrix, one of the largest independent alternative investment platforms for hedge funds and managed futures, said it has “encountered significant cash flow issues,” according to a letter obtained by Opalesque and confirmed by multiple commodity trading advisors. The letter also announce...