Managed Futures During Equity “Crises”–An Update

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.

When Does Trend Following “Kick In”?

October 2018 was a very difficult month, and managed futures* investors were severely disappointed as many trend-followers lost money along with equities.

Financial Weapons of Mass Destruction: Redefined

Find asset classes that are uncorrelated to the stock market to hold while the war wages, and keep a bit of cash on the sideline to pounce on equities (both Chinese and U.S.) after the dust finally settles.

Managed Futures: The Potential Benefits of a Short and Long term Perspective

Like most other asset classes, managed futures performance is cyclical, and should be viewed in the context of overall investment performance across asset classes over both short and long time horizons. Although managed futures have not worked all the time, they may offer the potential to work over time.

Managed Futures and CTAs: A Smorgasbord

Historically, over the last thirty-five or so years, the managed futures asset class has become synonymous with systematic trend-following CTA programs that actively trade futures or forward contracts. 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.

Allocating to “Liquid Alternatives”

An investor should not expect to be compensated for taking on diversifiable risk, only for systematic or market risk. A useful analogy is that of a fire-fighter who willingly leaves his protective gear behind to enter a burning house and then expects to be paid more because he took on greater risk. But the risk he took was unnecessary and avoidable.