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Managed Futures Division

Straits Financial LLC understands the importance of adding Managed Futures to a diversified portfolio of investments. In a world of increasing volatility and uncertainty, Managed Futures offer investors portfolio diversification beyond traditional asset classes and provide the potential for positive returns in many stock market environments. 

Straits Financial LLC is a full clearing member of the CBOT and the CME Group which is an industry leader in the marketing and development of Managed Futures. The CME Group has established a Managed Futures Resource Center and Straits Financial is committed to utilizing this resource to promote our Managed Futures Division.

Please contact us by email at managedfutures@straitsfinancial.com or by phone at +1 312.668.8217 for more information about strategies as well as opening a Managed Futures account.

Michael A. DeRose—Director, Managed Futures Division

The Straits Financial LLC Managed Futures Division is managed by Michael A. DeRose. With close to 25 years in the professionally managed futures and alternatives industry Mr. DeRose has directed the growth of over $1 billion USD for managed futures programs.

As Director, Mr. DeRose's responsibilities include the development and marketing of all strategies and supervision of professionally managed futures products in the US and internationally. Mr. DeRose is a registered member of the CFTC/NFA with expertise in the development  and implementation of strategies or portfolios of strategies involving professionally-managed futures and top-ranking emerging managers to provide diversification for retail and institutional investors as well as family offices.  Mr. DeRose has decades of experience in the use of leverage managed futures strategies and commodity related products as means of providing non-correlated or low-correlated asset classes to investment portfolios while lowering overall portfolio risk, enhancing returns and utilizing volatility in any market environment.  Mr. DeRose has broad-based experience and expertise in constructing businesses relating to Unified Managed Accounts (UMAs) and alternative investments such as hedge funds, managed futures funds and individually-managed accounts.

Benefits of Managed Futures

By their very nature, managed futures provide a diversified investment opportunity. Trading advisors can participate in more than 150 global markets; from grains and gold to currencies and stock indices. Many funds further diversify by using several trading advisors with different trading approaches. The goal is to reduce the overall risk as measured by maximum drawdowns and/or increased return. There is no guarantee that these goals can be achieved.

The potential benefits of managed futures within a well-balanced portfolio include:

  • Potential to lower overall portfolio risk
  • Potential opportunity to enhance overall portfolio returns
  • Broad diversification opportunities
  • Potential opportunity to profit in a variety of economic environments

May limit losses due to a combination of flexibility and discipline

Risks of Managed Futures

  • Loss of initial investment
  • Loss in excess of initial investment
  • May not be able to exit position in most favorable environment (liquidity)
  • Click here for a Managed Futures example represented by the Barclay Index.


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)