Why Managed Futures?

 Performance When Stocks Are Down

Futures-based investments are often viewed as higher return/ higher risk, but it is their non correlation with traditional markets which causes managed futures investments to be volatility reducers and portfolio diversifiers during the bad times for traditional investments.

 Performance When Stocks Are Up

Managed Futures non correlation to stock markets means there will be periods when stocks and managed futures both go up in tandem, and periods when they go down in tandem, as well as the periods where they move opposite one another. Taking a longer perspective shows that managed futures have can perform in a wide range of stock market environments, including positive performance during stock rallies.

What Are Managed Futures?

Managed Futures are alternative investments which rely on professional investment managers known as Commodity Trading Advisors (CTAs), who specialize in trading exchange traded futures contracts both long and short in markets across the world.

Tactical Commodity Exposure

Managed Futures was one of the only asset classes to capitalize on Crude Oil’s heavy sell off in 2014/2015; and delivers true non correlated performance via accessing different return drivers in markets as diverse as Cotton and Japanese Bonds.

Transparency, Liquidity & Control

  • Transparency

    The use of exchange-traded futures markets allows for real-time and daily marked to market position level reporting, risk analytics, and performance attributes. While disclosure documents and quarterly invoicing by managers outlines all fees charged to accounts.

  • Liquidity

    Managers utilize only exchange-traded futures and options, with no illiquid, opaque, hard to price OTC derivatives. This helps in entering and exiting positions, as well as allowing for investors to liquidate and have cash returned within 48 hours.

  • Control

    The ability to use different collateral pieces, increase and decrease trading levels on the fly, and start and stop investments as needed provides complete investor control over the structural side of the investment.

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