CTAs Weather the Storm

The appetite for managed futures funds or commodity trading advisors (CTAs), has surged amid steep declines in the equity market. Case in point -- U.S. stocks slumped to a 12-year low on Monday, closing below the 7,000-point mark for the first time since since May 1997, as another bailout of insurance giant AIG stirred fear about the stability of the financial system.

Amid the doom and gloom, CTAs have weathered the storm and have generated better returns in times of crisis.

"(They) definitely do well in this kind of environment," observed Daphne Roth, head of equity research, Asia at ABN AMRO Private Banking.

CTAs have in fact outperformed other asset classes, generating 36% in returns, Roth said.

The strategy -- spotting distinct trends in the market and capitalizing on that pattern. "They don't try to beat the market," Roth explained. "They also look at the volatility....(and) they have a lot of flexibility in deciding how much money to put into that space."

CTA strategy involves aborting a long position, for a short, or bearish bet, in order to capture the market momentum.

Roth also told CNBC's "Protect Your Wealth" that her current trading themes include going for investment grade bonds with credit ratings above A and picking stocks of cash-rich companies with strong balance sheets.

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Catch "Protect Your Wealth" on CNBC's Asia Pacific network every Tuesday on "CNBC's Cash Flow," Wednesday on "Asia Squawk Box" and Thursday on "Capital Connection."