CFA Level I · CFA Level I Exam · Hedge Funds
Compared with discretionary global macro managers, systematic managed futures (CTA) funds that follow trend-following models are most likely to:
Systematic trend-following managed futures funds most likely rely on rules-based signals derived from price trends. They trade liquid futures contracts using quantitative models, rather than performing issuer-level fundamental analysis or holding illiquid private securities, which distinguishes them from discretionary managers and other strategies.
- Arely on rules-based signals derived from price trendsCorrect
- Bdepend on in-depth fundamental analysis of individual issuers
- Chold concentrated positions in illiquid private securities
Explanation
Systematic CTAs use quantitative, rules-based models, with trend following generating signals from price momentum. They trade liquid futures rather than private securities and do not focus on issuer-level fundamentals.
Did you get it right without looking?
One question tells you little. A timed set on Hedge Funds shows your real accuracy, how long you take and where you lose marks.
More Hedge Funds questions
- A hedge fund has a high-water mark. After a year in which the fund lost value, the high-water mark most likely ensures that the manager:
- Compared with a directional long/short equity fund, a relative value hedge fund strategy is most likely to:
- Compared with traditional long-only mutual funds, hedge funds are most likely to:
- A fixed-income arbitrage manager holds a long position in an off-the-run government bond and a short position in a similar on-the-run bond, …
- A hedge fund index is built only from funds that choose to report their results to a database. Funds that have performed poorly often stop r…
- A manager runs a portfolio with long positions of $60 million and short positions of $40 million against $50 million of investor capital. Th…