Graphic of the Day – Investors in CTAs

By Hedge Fund Insight staff

Today’s graphic shows the proportion of each investor type that invest in CTAs.

Source: Preqin Hedge Fund Investor Profiles

From this graphic one could say that a fund of hedge funds is four times as likely to have invested in CTAs as a family office.  Or, that a marketer of CTAs has only 1-in-7 chance when pitching to an Endowment of presenting to an existing investor in the strategy.

Another observation is that, according to Preqin’s data on investors in hedge funds, public pension funds are twice as likely to have invested in CTAs as private sector pension funds. Is there a difference in time fame or risk tolerance that can account for these different proportions? Do these two groups of pension plans use different alternative investment advisors? If you can explain this difference in willingness amongst pension plans to invest in CTAs please use the comments field below to let the rest of us know!