CHICAGO (HedgeWorld.com)–It’s not a golf tournament or a new TV reality show.
The PFG Annual CTA Challenge is not a gimmick, either. It’s not really even a competition. Run by Peregrine Financial Group Inc., with help from commodity trading adviser Trader Source Inc., this year’s challenge really is about finding the best young CTA managers.
The event already has 30 emerging CTAs–those managing less than US$15 million in assets–signed up to participate. More may be added by the time the challenge starts May 1, PFG President Neil J. Aslin said.
From May through October, PFG and Trader Source will monitor the performance of the young CTAs. On Nov. 1, the one who earns the best risk-adjusted return on a US$50,000 trading account will be declared the winner. That winner will be eligible to receive a US$1 million trading account allocation from institutional investors selected by PFG and Trader Source.
Mr. Aslin described the challenge as a sort of “farm system for CTAs” and said it has two goals.
“We want to identify high-quality emerging fund managers and, further, increase the distribution of a portfolio of managed products that are ideal for both institutional and retail markets,” Mr. Aslin said.
This year’s will be the second annual challenge (seePrevious HedgeWorld Story). Last year’s winner, Villano Capital Management Inc., Nesconset, N.Y., now is included in PFG’s manager lineup.