CTA Manager Selection Overview
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The portfolio construction process begins with our quest to identify and invest with the best managers in the managed futures industry. In this regard, Foss Mountain Capital views CTAs as a "talent pool" of managers, not an asset class. We seek talented individuals who trade on an information edge and capitalize on inefficiencies in the market.

There is no such thing as one "best" manager for all investors, because not all investors have the same circumstances and objectives. Selecting an investment manager based strictly on past performance tends to be a losing proposition; past performance, by itself, gives only a limited indication of how a manager may perform in the future.

Investing in managed futures is risky and can test one′s emotional limits – particularly for those who don′t consider the risks of investing or don′t plan an exit strategy. On the other hand, managed futures offer an excellent opportunity for sophisticated investors to achieve enhanced return and reduced risk.

The goal of most CTAs is to manage their equity by managing their losses, putting them in position to capitalize on trending markets when they occur. They accomplish this by diversifying and limiting their losses on each individual trade. Not every CTA we choose will be profitable; the goal is for the overall portfolio to be profitable. Profitability may not happen over one month or one quarter, but rather over a longer time horizon. Investing in CTAs should not cause major anxiety but rather the potential to increase wealth with a reasonable amount of risk.

Foss Mountain Capital′s method to choosing CTAs in which to invest is a rigorous process.

Portfolio Construction Process

Step 1: Goals, Expectations & Risk