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Worst Hedge Funds – Trend Following Commodity Trading Advisors

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.

best-and-worst

Past performance is not indicative of future performance

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2 comments to Worst Hedge Funds – Trend Following Commodity Trading Advisors

  • Heng

    Three years of sub-par performance is a long time. I can’t imagine any retail trader who can hope to make a living with trend following under such circumstance.

    • andrabr9

      You are right Heng…However Paul Tudor Jones whom is considered a Legend or Guru is one of them. As much as past performance is not indicative and this draw down can continue….trend following a large basket of markets has enabled me to compound money over long periods of time…I have had long draw downs in the past….countless losses..which I have tried to keep small…

      this is trend following…look at this link…this sums up my point…
      http://www.iasg.com/groups/group/chesapeake-capital/program/diversified

      He has compounded at almost 12% and the last 2 years have been his worst…again..we are dealing with the uncertainty…
      Thank you for your comment

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