CTAs turn to fundamental models in search of diversification

Fundamental forces

follow-the-leader

The managed futures industry is synonymous with trend following and momentum strategies that operate on the premise that price information is the best indicator of future market performance.

But a handful of commodity trading advisers (CTAs) are going beyond price-based models and incorporating fundamental strategies into their investment programs. For these CTAs, fundamental models represent both a source of diversification and a complementary factor that can improve the performance of a managed

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