Altegris CTA Manager Selection Process
With years of alternatives experience, we know what to look for, what to ask, and most importantly — what to avoid. This expertise equips Altegris Clearing Solutions, LLC and its affiliates to navigate the universe of commodity trading advisors (CTAs) and managed futures trading programs to find those that we believe best suit our clients' investment goals and objectives.* And our job doesn’t stop there. We continually evaluate and analyze our selections and make changes when necessary to ensure that the line-up of CTAs that we recommend for our clients represents what we believe are best-of-breed managers.
Our CTA manager selection process is performed primarily by the Research and Investments Group within Altegris Advisors, LLC, an affiliate of Altegris Clearing Solutions and a company within the Altegris Group of Companies. Altegris Advisors provides advisory, consultancy and due diligence support for all of the investment funds, strategies and/or managers as are sponsored, advised or recommended, as applicable, by the Altegris Group of Companies.*
Altegris continually searches the universe of CTAs and managed futures trading programs to identify new opportunities for our clients. Blending top-down viewpoints and bottom-up analysis helps us to continually bring new ideas into the Altegris manager selection and review process.
Assessment and Manager Selection
Once specific CTAs and managed futures trading programs have been identified as potential candidates for recommendation by Altegris, the Research and Investments Group at Altegris Advisors gathers information that includes reviewing key documents, interviewing managers, and analyzing performance, as well as a review of the investment strategy and operations for the CTA and trading program under consideration, and background checks of key employees of the CTA firm.
The final results of the assessment are reviewed by a committee comprised of both senior members of management within the Altegris Companies and seasoned futures investment professionals within the Research and Investments Group, and a decision is made by this committee on whether to select the CTA and its trading program for inclusion on the Altegris platform of recommended CTA programs. Approval requires unanimous committee consent.
Ongoing Evaluation and Analysis
Our job isn’t over once a CTA and its trading program have been selected. The Research and Investments Group will continually monitor the CTA's strategy and program performance and periodically follow-up with each CTA, by conference calls or face-to-face meetings, as appropriate, to monitor any significant changes or events that might cause a decision to reconsider, or possibly remove, a CTA or its trading program from our recommended list.
*This summary is not intended as an exhaustive or specific list of all actions taken with respect to every manager selection process undertaken by Altegris, nor does it contain all the specific inquiries that will be important in connection with the evaluation of an individual CTA or trading program. Rather, it sets forth a foundation upon which each CTA and trading program selection process is constructed. Each CTA and trading program undergoes a unique degree of review, as the depth and quality of data, transparency, and access varies widely among the universe of managers considered by Altegris for addition to its platform of recommended CTAs and managed futures trading programs.
Different due diligence reviews and processes will apply to mutual funds, hedge funds or commodity pools sponsored, advised or recommended by other affiliates within the Altegris Group of Companies, as compared to the manager selection process described above for CTAs and managed futures trading programs recommended by Altegris Clearing Solutions for engagements by its clients for their separate managed futures trading accounts.
Of course, no amount of diligence in any selection process can serve as a panacea against investment failures or even against fraud. The manager selection process performed by Altegris should not be considered as a replacement for a prospective investor's own due diligence, or as a substitute for seeking independent investment, legal or tax advice regarding an investment under consideration.