Managed Futures

Investments in commodities and managed futures have the potential to provide alpha or value added absolute returns that are non-correlated from traditional portfolios invested in stocks and bonds. Commodity investments also offer the potential for insurance against uncertain rate environments, inflation, and market crisis periods.

What differentiates managed futures and other alternative investments?

Managed futures are transparent, highly liquid, and regulated by the National Futures Association and the Commodity Futures Trading Commission.  Which is in contrast to many alternative investment vehicles; such as hedge funds, fund of funds, private equity, venture capital funds, and oil and gas limited partnerships that could lack the transparency, liquidity, or regulatory oversight. 

Why should investors include managed futures in their portfolios?

Managed futures are a flexible alternative investment vehicle that can benefit a customer by allowing the opportunity to broadly diversify across global markets, as well as potentially balance, enhance returns, and decrease volatility of an entire portfolio.

Additional Resources:

10 Reasons Managed Futures-1
In Search of Crisis Alpha, A Quick Guide to Managed Futures
Lintner Revisited Quantitative Analysis
Usage of Futures by Pension Plans ( Institutional)