Richard Bornhoft is founder, president and CIO at Bornhoft Group and has specialized in the creation and oversight of CTA-managed futures portfolios for more than 30 years. He sat down with JLN editor-in-chief Jim Kharouf to talk about the managed futures space, the opportunities in the space and the challenges that are still facing the industry.
Bornhoft has almost 30 years experience as an investment manager in the development and management of multiple-CTA managed futures portfolios for institutional investors. He has designed and implemented the asset allocation, valuation and risk management for such portfolios. During his career, he has managed about 20 institutional accounts that allocated to multiple-CTA managed futures funds or portfolios. He was responsible for the one of the first index-linked managed futures products — the MAR Trading Advisor Index Fund, launched in 1999, and was later a founding principal of Morningstar Hedge.
He is also a founder and chief investment officer of Equinox Fund Management, the sponsor of the first US publicly registered managed futures fund with daily liquidity, as well as the sponsor of the first mutual fund employing CTA programs.
Bornhoft is widely known in the industry as a pioneer in the managed futures investment space. He talks in this interview about how the managed futures space has changed, fees and how he builds a portfolio. But he also sees limitations for CTAs and the ongoing issue of scaling and size of managed funds.