Trends Watch: June 22, 2017

EisnerAmper’s Trends Watch is a weekly entry to our Alternative Investments Intelligence blog, featuring the views and insights of executives from alternative investment firms. If you’re interested in being featured, please contact Elana Margulies-Snyderman.  

This week, Elana talks to Adam Cai, Vice President & Director of Research, Goldenwise Capital Management Inc.

What is your outlook for alternative investments, or more specifically, CTAs?

There are growing demands for CTAs, mostly because they generate non-correlated returns with traditional equity exposure such as the S&P 500. CTAs are able to apply a variety of trading models that can leverage multiple asset classes. This diverse universe gives investors easy access to what they are ultimately looking for. Our CTA is pretty much focused on the volatility arbitrage. With no directional bias, we are able to identify opportunities in both bullish and bearish markets.

What is your outlook for the economy?

The economy is in a mixed stage. The soft data seems to still have a wide gap with hard economic data.  Since the U.S presidential election, the market has been moving up quickly in anticipation of big tax cuts, infrastructure spending and higher inflations.  However, according to some economic data released recently such as non-farm pay roll/labor participation rate/new hiring, it has been moderated and it seems the post-election passion is slowly fading away.

What keeps you up at night?

Sudden market abrupt changes/ political events. Black-swan outcome.