9 times out of 10 a CTA is in fact a hedge fund, i.e a CTA (commodity trading advisor) is a Managed Futures Strategy incorporated as a hedge fund.

Somewhat perversely CTA strategies are not limited to trading Commodities markets and we commonly see funds which also participate in equity, indexes, rates and currencies- all of which provide sufficiently deep liquidity to satisfy the redemption requirements of investors whilst adding an extra layer of diversification (andin some cases inadvertently exchanging low beta correlation for alpha). Accordingly, the definition of a CTA is (perhaps appropriately)as amorphous as that of its arguable parent- thehedge fund. If we were to look for defining characteristics of the CTA it would be low correlation and liquidity.

What is the difference between cash funded and notionally funded in hedge funds?

What different type of hedge funds are there?

What is the difference between a hedge fund and a hedge fund management company?

What is the difference between a hedge fund investor and a hedge fund manager?

What is the difference between a hedge fund analyst and a hedge fund trader?

Why do Commodity Trading Advisors (CTA) mostly use trend-following strategies instead of mean-reversion strategies?

How is a hedged portfolio different from a hedge fund?

What are the differences between hedge funds and private equity?

Whats a hedge fund? Does the revenue model for different hedge funds vary?

Whats the difference between hedging and hedge fund?

What is the difference between equity funds and opportunity funds?

What is the main differences between hedge funds, mutual funds, and venture capital?

Is there any difference between mutual funds and hedge funds trading platform?

What is the pay-salary difference between mutual funds and hedge funds?

What is the difference between cash funded and notionally funded in hedge funds?

What different type of hedge funds are there?

What is the difference between a hedge fund and a hedge fund management company?

What is the difference between a hedge fund investor and a hedge fund manager?

What is the difference between a hedge fund analyst and a hedge fund trader?

Why do Commodity Trading Advisors (CTA) mostly use trend-following strategies instead of mean-reversion strategies?

How is a hedged portfolio different from a hedge fund?