After 2008, many institutions invested into CTAs taking "the easy route" of simply investing with the largest and best known managers. But: A manager's performance is negatively affected by both AUM and age. Therefore, it is important that investors can identify the "sweet spot", the ideal time when to invest with a manager. The goal should be to invest early with the future, and not the current, big names in the industry. RPM founder Mikael Stenbom talks in this Opalesque.TV BACKSTAGE interview why PRM's new fund of “Evolving CTAs” offers investors better returns compared to managers who are in other stages of the corporate life cycle (start-up, maturity and decline/rejuvenation).
He also points out that many investors in the end tend to be performance chasers, despite their best intentions and assertions. However, the better approach to investing involves a lot of work and know-how in analyzing and correlating a manager's returns to the markets - and then be bold and to invest anti-cyclical. Mikael also talks about “Crisis Alpha": CTAs perform best when equity markets tumble, and how the CTA industry evolved during the last 20 years with tech empires having become the latest breed of traders.
Mikael Stenbom is a founding partner of RPM and serves as the company’s CEO. Mr. Stenbom holds an MBA from Stockholm School of Economics and is a graduate from the Royal Swedish Naval Academy. Previous positions include RM Råvarumäklarna AB, CEO, Scandinavian Strategy Development AB, CEO and OM Group, Marketing Director. RPM (Risk & Portfolio Management) is a CTA specialist established 1993 in Stockholm. With 22 people on staff, the firm has around USD 3.5 billion under management and advisory.
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After 2008, many institutions invested into CTAs taking "the easy route" of simply investing with the largest and best known managers. But: A manager's performance is negatively affected by both AUM and age. Therefore, it is important that investors can identify the "sweet spot", the ideal time when to invest with a manager. The goal should be to invest early with the future, and not the current, big names in the industry. RPM founder Mikael Stenbom talks in this Opalesque.TV BACKSTAGE interview why PRM's new fund of “Evolving CTAs” offers investor
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