The 16th World Knowledge Forum

October 22nd Shilla Hotel, Seoul

CTASSET experts have been invited to deliver a key note session on how to diversify risk using alternative investment strategies. The session will take a new approach to explaining Managed Futures and explain why they can deliver “crisis alpha” opportunities for their investors. Crisis alpha opportunities are profits which are gained by exploiting the persistent trends that occur across markets during times of crisis.

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In Search of Crisis Alpha.
Managed Futures.

CTASSET has partnered with Kettera Strategies, operator of Hydra — a platform registered with the U.S. Commodity Futures Trading Commission — that allows qualified investors to easily invest in a carefully curated array of CTA, FX, and Macro strategies. Hydra offers each strategy within a pooled vehicle, giving investors the best features of both separately managed accounts and commodity pools including: access to notional funding, increased transparency, semi-monthly liquidity, limited liability, and aggregated reporting.

Direct Investors

CTASSET gives investors the ability to invest in top-tier managed futures and hedge fund managers at much lower minimums through pooled Managers' cells.

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RIAs

CTASSET allows RIAs to structure their own portfolio or fund in a very cost efficient manner, amortised over time, than forming their own fund the traditional way.

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Managers

CTASSET allows for partial funding, intraday reporting, semi-monthly liquidity, while retaining the best features of a regular fund, such as partnership accounting, tax treatment and limited liability.

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What is CTASSET?

Access to Talent

Through CTASSET, investors have the
ability to invest in top-tier macro, managed futures and hedge fund managers at much lower minimums than direct managed
accounts with the managers, accessing through pooled Manager Cells with semi-monthly liquidity.

An arm of the platform, Hydra Emerging, offers access to newer and smaller programs.

Tactical Strategies

Tactical strategies consist of global macro, CTA, FX, commodities and volatility-trading programs. The common theme is a source of diversification and a generator of returns uncorrelated to mainstream equity and fixed income investments.

According to Bloomberg estimates as of mid-2013, of the roughly $2.5 Trillion in alternatives worldwide, there was more than $325 Billion in managed futures (which includes CTAs, FX managers, commodities managers).

Best Way to invest in Managers

CTASSET allows investors to get “best of both worlds”:

Like a managed account, you can access intra-month liquidity, leverage, transparency, and custody with your own brokerage.

Like a hedge fund, you have limited liability, no operational & legal burdens of a managed account.

"Hydra is a modern alternative investment platform that gives investors the ability to invest in top-tier macro, managed futures and hedge fund managers at much lower minimums than direct managed accounts with the managers, accessing through pooled Manager Cells with semi-monthly liquidity."

Jon Stein, CEO
Kettera Strategies

Frequently asked questions

What is Managed Futures?

Managed futures are futures positions entered into by professional money managers, known as commodity trading advisors (CTA), on behalf of investors. Managers invest in energy, agriculture and currency markets (among others) using futures contracts and determine their positions based on expected profit potential. The potential benefits of managed futures are that the investments may help diversify one's portfolio and, under some conditions, minimize risk. For example, investing in currencies abroad may mitigate domestic risk. Managed futures may also help the individual to profit or minimize risk during periods of slow economic growth.

What is CTA?

An individual or firm who provides individualized advice regarding the buying and selling of futures contracts or options on futures, or certain foreign exchange contracts. The Commodity Trading Advisor (CTA) registration is required by the National Futures Association (NFA), the self-regulatory organization for the industry. A CTA acts much like a financial advisor, except that the CTA designation is specific to providing advice relating to commodities trading.

What are Tactical Strategies?

Tactical strategies consist of global macro, CTA, FX, commodities and volatility-trading programs. The common theme is a source of diversification and a generator of returns uncorrelated to mainstream equity and fixed income investments. According to Bloomberg estimates as of mid-2013, of the roughly $2.5 Trillion in alternatives worldwide, there was more than $325 Billion in managed futures (which includes CTAs, FX managers, commodities managers).

Aren’t “Tactical Strategies” really just another name for CTAs?

No. Tactical strategies covers a wider universe of strategies than just CTAs, although Tactical programs may trade many of the same instruments. We believe one problem in the marketplace today is labels. Often investors embrace strategies that hit on certain “buzz words” (e.g .global macro) and end up getting something entirely different than expected. Other times, investors sometimes reject a program because it appears to fall into an unwanted category, even though it has little in common with that class of strategy.

How is CTASSET different from other Platforms?

To be a real “managed account platform” the platform must provide three essential things: analysis of the manager, ability to invest into the manager, and then track the manager once invested. There are three different types of firms that fit that definition: bank-based (swaps-based) manager platforms, “virtual” platforms that really feed into pre-existing funds and structures outside the platform, and entity-based platforms. Hydra is the last of these, an entity based platform. Of the entity-based platforms there are arguably 6-7 providers in the world (including Hydra), with only half of these offered to U.S. investors. Of those 2-3 in the U.S. only Hydra focuses purely on the Tactical strategies (vs hedge funds, etc). Hydra is also the only platform that provides a workable portfolio builder, where users can move directly from building the portfolio to investing.

What is the difference between a CTASSET and a regular fund?

A great deal of difference! A regular fund typically requires full funding of the investment amount (i.e. if you want $1,000,000 of exposure you invest the entire $1,000,000), offers weekly P/L estimates, only monthly liquidity (typically with at least 30 days' notice), and have limited liability for the fund investors. In contrast, a CTASSET allows for partial funding (e.g. $1,000,000 of exposure by putting in $330,000), intraday reporting, semi-monthly liquidity (and daily in some cases). A Cell does retain some of the best features of a fund, though, such as partnership accounting, tax treatment, and limited liability.

How is the CTASSET similar to the traditional fund structure?

CTASSET offers the limited liability of a fund through Hydra Platform Cell. Also, a Hydra Cell (U.S.) features partnership accounting and tax treatment.

Does CTASSET offer only managed futures strategies?

Currently Hydra Platform specializes in what we call ‘Tactical’ Strategies. This includes both discretionary and systematic Global Macro, Commodities, FX, Natural Resources, Volatility strategies, and what most would consider CTAs.

Do you offer any hedge funds as well?

At this time, we only offer Tactical strategies on Hydra Platform. But given the number of equity hedge funds that have approached us (and their investors), we will likely begin offering hedge fund strategies within the coming year.

Where can I find full list of managers on your platform?

The most updated list of managers should always be available on the password-protected part of our web site. Please contact us for full list.

What are the fees and costs?

We offer competitive fees compared to expense ratio of most funds. Please contact us for details.
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