It is important to understand that not all futures-trading strategies fall under the managed futures umbrella as conventionally defined, and that even some well-known research and ratings agencies have on occasion ended up misclassifying some funds and strategies as managed futures.
The managed futures asset class has acquired a reputation among investors for providing what is known as "crisis alpha" – the ability to generate returns at a time of market crisis. This brief insight reviews the historical performance of equities and managed futures during times of crisis, including the most recent example, December 2015 – January 2016.
Created as a tool for Advisors, this client friendly presentation provides a succinct overview of the asset class and examines the impact managed futures can have throughout several market environments.
The 60% / 40% allocation to stocks and bonds has long been viewed as a useful benchmark for diversification, albeit naïve, by many investors.
This insight explores the historical data to show examples of diversification using managed futures.
A comparative performance review of various asset classes, along with annualized returns and standard deviation of managed futures, stocks and bonds dating back 15 years.
How CTA programs strive to manage risk, aim for shallow drawdowns, and seek to earn attractive returns.
Managed futures have historically displayed a low to negative correlation with traditional investments, while posting returns on par with those of equities.
Although most CTAs provide convincing explanations to help distinguish their own trading program from others, the differences among trading styles are often not as apparent as investors may expect. Published in 2015.
The sources of managed futures returns are legion: They can come from many different futures markets that are traded on many different exchanges in many countries and continents.