Tom Lloyd is general counsel at Campbell & Co., a Baltimore, MD-based provider of absolute return investment management, specializing in systematic managed futures and equity market-neutral strategies. Lloyd, a former managing director for Deutsche Bank Alex Brown, joined Campbell in 2005 to head the legal and compliance functions of the firm and its subsidiaries. In addition, Lloyd oversees Campbell’s fund administration function and, in November 2012, he was named to the firm’s board of directors.
Lloyd spoke with John Lothian News Editor-at-Large Doug Ashburn about the emergence of managed futures mutual funds as an additional investment choice in the alternatives space, and explained some of the logistics behind setting up such a fund and carrying out the accounting, reporting and marketing functions. He closes with a discussion of the JOBS Act and how possible changes to general solicitation and advertising could affect Campbell’s marketing strategy.
Campbell has certainly been a strong contributor to the growth of managed futures, as one of the pioneers in the space, launching in the early 1970s. Since 2002, the assets under management in the managed futures space has exploded, rising from $50.9 billion in 2002 to $335 billion in 2012. The 2012 figure was up from $314 billion in 2011, according to AlphaMetrix Alternative Investment Advisors and BarclayHedge. Today, Campbell holds more than $3 billion in assets under management with a mix of CTA programs and customized asset management services. Most recently, Campbell teamed up with Equinox Fund Management, a major player in alternative investment fund solutions, to create a managed futures mutual fund, or “40 Act” fund. The fund, called the Equinox Campbell Strategy Fund, was launched on March 7.
Campbell is hoping to ride the potential growth of 40 Act funds which, over the past several years, have experienced significant growth in assets under management. A CME Group list of the top 23 managed futures mutual funds totaled $8.6 billion as of November 27, a touch up from $8.4 billion on March 31, 2012. Breaking those numbers down further, the top 10 funds accounted for $7.82 billion, even for both the November and March timeframes.