Evaluating a Tear Sheet

When evaluating a tear sheet from a Commodity Trading Advisor (CTA), investors should focus on clarity, transparency, and relevance to their investment goals. A tear sheet should be a concise, data-rich summary that offers a snapshot of the CTA’s strategy and performance. Here's what to look for:

Strategy Overview

The tear sheet should clearly describe the trading strategy—whether it’s trend-following, mean reversion, discretionary, or systematic—and the markets traded (e.g., commodities, currencies, indices).

Takeaway: Does the strategy align with the investor’s portfolio objectives and risk tolerance?

Performance Metrics

Key statistics include monthly and annual returns, maximum drawdown, Sharpe ratio, Sortino ratio, and assets under management (AUM).

Takeaway: Consider consistency, volatility, and risk-adjusted performance.

Risk Disclosure

A credible tear sheet includes disclaimers and risk disclosures, acknowledging that past performance is not indicative of future results.

Takeaway: Does this CTA show regulatory compliance and ethical transparency?

Contact and Regulatory Info

Verify the CTA’s registration with the NFA or CFTC, and ensure contact details are provided for follow-up.

Takeaway: Ultimately, a tear sheet should prompt investors to ask deeper questions and initiate due diligence, or dismiss a product as unsuitable for their use. It’s not just about numbers—it’s about understanding the CTA’s edge, discipline, and fit within a broader investment strategy.

Effective May 31, 2026, futures trading and clearing services formerly provided through R.J. O’Brien Associates, LLC will now be provided by StoneX Financial Inc. Any reference to R.J. O’Brien Associates, LLC after May 31, 2026, is a reference to StoneX Financial Inc.

Futures and Options on Futures trading services are provided by the FCM Division of StoneX Financial Inc (“SFI”) (NFA ID: 0476094). Futures, and Options on Futures involve significant risk of loss and may not be suitable for all investors. Past performance is not indicative of future results. Check the background of SFI's FCM Division on NFA’s BASIC system.

SFI is wholly-owned subsidiary of StoneX Group Inc. (NASDAQ: SNEX). StoneX Group Inc., through its subsidiaries, connects clients to the global markets ecosystem – providing customers with market access, end-to-end clearing and execution, and high-touch expertise.

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