CTA · Core
CTA Managed Account
Client money in a futures account the CTA trades by POA — transparency, better liquidation, and operational work versus a commingled fund.
Definition
The LP sees positions daily, can fire the POA, and owns the margin line. Fees are often a management/incentive on the account. Minimums are high. FoFs love this for netting and style control.
Why it matters
Madoff-style opacity is harder. The trade-off is 40 accounts to operate and a PM who hates 40 margin calls.
Case
A 2008 prime issue: the SMA LP pulled the POA and flattened, while the fund share class waited on gates that did not exist in futures — futures funds are usually more liquid, but the SMA is the cleanest kill-switch.
How to read it
Prime, margin, and who can override. An SMA that the GP can still lock is not an SMA.
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