Renaissance to Launch New $25B Managed Futures Fund

By: World Beta Thursday, July 12, 2007 4:06 PM

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When the best hedge fund on the planet decides to launch a new fund, it bears watching. Even more interesting is the area Rentech has decided to pursue. The full press release is at the end of the post, and below are my comments as there seems to be a great deal of misunderstanding in the commodities and managed futures space.

On one side there are the almost religious-like proponents of managed futures - dominated by long term trendfollowers who exclaim mantras such as, "The trend is your friend until it bends in the end". On the other side there exist skeptics that believe the returns are simply survivor bias in a random process. I fall somewhere in the middle, and in my opinion, this is a great example of trying to understand the drivers of a relatively simple strategy.

I have touched on commodities on the blog before:
Q&A with Harvard's El Erian
Q&A with Bob Greer from PIMCO

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