Managed Futures refers to a 30-year-old industry made up of professional money managers who are known as “commodity trading advisors” (CTAs).
CTAs usually manage their clients’ assets using a proprietary trading system or a discretionary method that involves going long or short in futures contracts in areas such as metals (gold, silver), grains (soybeans, corn, wheat), equity indexes (S&P futures, Dow futures, NASDAQ 100 futures), soft commodities (cotton, cocoa, coffee, sugar) as well as foreign currency and U.S government bond futures.
The benefits of managed futures within a well-balanced portfolio include: 1. Potential to lower overall portfolio risk 2. Opportunity to enhance overall portfolio returns 3. Broad diversification opportunities 4. Opportunity to profit in a variety of economic environments 5. Limited losses due to a combination of flexibility and discipline By their very nature, managed futures [...] - Read More
The term managed futures describes an industry comprised of professional money managers known as commodity trading advisors (CTAs). These trading advisors manage client assets on a discretionary basis using global futures markets as an investment medium. Trading advisors take positions based on expected profit potential. Managed futures have been used successfully by investment management professionals [...] - Read More
Independent research presents a well-supported case for diversifying an investment portfolio with managed futures. One of the most attractive features of managed futures is the ability to add diversification to an overall investment portfolio. This ability has been documented in several studies. According to one such study conducted by the Chicago Mercantile Exchange: “Portfolios with [...] - Read More
The term managed futures represents an industry comprised of professional money managers known as commodity trading advisors (CTA’s). Using global futures and options markets as an investment medium, CTA’s manage client assets on a discretionary basis. The manager makes all decisions on the clients’ behalf through a revocable power of attorney. Futures and options have [...] - Read More
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