Now a few of them are seeking uncorrelated returns and a little extra alpha in anything from cheese and Turkish scrap steel to obscure chemicals or eggs in China.
With at least $7 billion invested across at least eight such funds, up from one fund and $1 billion five years ago, these alternative CTAs remain very much a niche strategy. But trend-following funds have been blamed in the past for amplifying selloffs in some of the most liquid assets, because they tend to rely on similar models. As more money is targeting much smaller markets, even some fund managers warn of risks if managers pile into the same trade or unforeseen events cause a selloff.
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