
P1: OTA/XYZ P2: ABC
JWBT468-c03 JWBT468-Burghardt March 8, 2011 21:35 Printer Name: Courier Westford
58 A Practical Guide to the Industry
alphabetically on the left and the non-trend-following CTAs alphabetically
on the right. Thus, you find Aspect through Winton on the top and Boronia
through QIM on the bottom.
It may seem unfair to show returns after the fact for the two groups, but
the important thing to know is that trend-following CTAs tend to target a
higher return volatility than do non-trend-following CTAs, whose approaches
to trading strive for more diversity. And in this example, the only way to earn
more than 10 percent would have been to