Managed Futures’ returns are uncorrelated or even slightly negatively correlated to those of traditional asset classes, like stocks or bonds or real estate. As such, this complementing investment strategy can serve as insurance against severe equity downturns. Also the Managed Futures’ alternative risk profile typically reduces the volatility of the client’s overall wealth. It thus can have a stabilizing effect on the total performance.
In contrast to traditional long-only investments in stocks, bonds and real-estate, futures can just as easily be sold as bought. This characteristic ensures that independent of particular conditions in other markets Managed Futures are possibly able to and indeed aim to produce a positive return in all circumstances.
Benefit from prolonged price trends in commodities, equity indices and interest rates. In particular shifts in the supply-demand balance of commodities can cause lasting price trends. These price adjustments rarely happen instantaneously to the full extent but can be exploited.
TRANSPARENCY & LIQUIDITY
Managed Futures’ investors are provided a real-time overview of value and composition of their futures portfolio. In addition, if necessary, funds can be withdrawn within the shortest period. Most futures contracts are highly liquid investment tools.
In order to protect investors and market users alike, Managed Futures managers, the registered Commodity Trading Advisors (CTAs), are highly regulated by U.S. organizations.