Batter Up: Managed Futures and the Coming Crisis

Last week, we dedicated everything we had to attending multiple conferences and absorbing as much as we could about alternative investing trends in the industry. If you’re interested in what we found out, it’s all up on the blog for your perusal. But as we said throughout the week and for hours back at the office, Europe is flat out dominating the conversation among investing professionals. Whether or not they’ll admit it out loud, people are nervous. There’s marketing spin everywhere you look, but one scratch below the surface tells us that there is a real fear that we could be witnessing the unraveling of the European Union in slow motion… and the global financial system is biting their nails over the fallout, from bank exposure to investor confidence to overall liquidity.

While these are interesting times, I guess you could say we aren’t quite at the Mayan’s level on what the end of the year will bring. Make no mistake- there is volatility on the horizon, and it may end up being a bitter pill to swallow for most of the investing population, as their attempts at diversification fall victim to the rising correlation of asset classes. However, in the managed futures world, there’s a sense of “been there, done that” that gives us a slightly different perspective. Banter in our office has been less focused on Greece and more focused on some of the managers that have either already been tearing it up in this climate, or positioning their portfolios to capitalize should things worsen from here.  To be fair, there are other managers who are struggling, and past performance is not necessarily indicative of future results, but the tides seem to be shifting in a way that we can’t help but get excited about.

See, while we’re always trumpeting the benefits of managed futures for a portfolio, we feel like the current environment is getting set up for moves that could benefit managed futures in a big way. To understand why that’s the case, we have to understand how the buzz words of the day- “liquidity,” “debt,” “volatility,” and “risk”- play into the market movements we’re witnessing right now, and could impact the markets tomorrow. At that point, we can take a look at how managed futures has performed during those periods in the past, and then you might understand why we’re a lot less “somber” than the rest of the investing world right now.

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Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

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