BALTIMORE (HedgeWorld.com)–For years the stepchildren of alternative investments, futures’ strong performance has whipped up demand to the extent that one long-running manager, Campbell & Co., increased minimum investment requirements for its CTA pools.
Campbell’s funds have grown to US$3.6 billion from US$2.8 billion at the end of last year. Faced with accelerated expansion, the firm decided to apply a gentle brake. “There is no strategy that can manage infinite money,” said Campbell President and Chief Executive Bruce Cleland. “We want to manage the pace at which we grow.”
Campbell’s CTA portfolio is predominantly financial, with about 85% in currencies, interest rate instruments and stock indexes. Approximately 14% is in energy and 1% is in metals. Although the manager believes that the strategy can accommodate considerably more money, the growth rate has become too fast.
Minimum investment will be $100,000 in the largest publicly offered fund and $250,000 in the private pools. The firm’s long/short equity fund, which uses a statistical arbitrage strategy, has not changed its minimum investment. Campbell also offers an offshore master fund that includes a combination of statistical arbitrage and CTA strategies.