How Third-Party Commodity Pool Operators Assist Alternatives Managers with US Regulation

Extreme market volatility has resulted in growing interest for separately managed accounts and managed account platforms.  At the same time, alternative asset allocations are on the rise with the managed futures industry accounting for a sizeable portion of inflows.  Despite their alpha-generating potential, meeting the reporting requirements of these strategies is often beyond the bandwidth of many small to mid-size asset managers. As such, they may consider engaging a third-party commodity pool operator to handle reporting requirements, allowing them to focus on delivering market-beating returns while helping to keep management fees to a minimum.