10 Reasons for Managed Futures
Diversify beyond the traditional asset classes.
1.Managed Futures are an alternative asset class that has achieved
strong performance in both up and down markets, exhibiting low
correlation to traditional asset classes, such as stocks, bonds, cash
and real estate.
2.Reduce overall portfolio volatility.
In general, as one asset class goes up, some other asset class goes
down. Managed Futures invest across a broad spectrum of asset
classes with the goal of achieving solid long-term returns.
Increase returns and reduce volatility.
3.Managed Futures, as well as commodities, when used in
conjunction with traditional asset classes, may reduce risk, while
at the same time potentially increasing returns.
4.Returns evident in any kind of economic environment.
Managed Futures may generate returns in bull and bear markets,
boasting solid long-term track records despite economic
5.Strong performance during stock market declines.
Managed Futures may do well in down markets because they
employ short-selling and options strategies that allow them to
profit in such markets.
6.Successful pension plan sponsors use them.
Pension plans have long used Managed Futures to generate
returns in excess of the S&P 500.
*1)Managed Futures: CASAM CiSdM CTA equal Weighted;
2)Stocks: MSCi World;
3)Bonds: JP Morgan Government Bond Global;
7.Commodity trade advisors (Ctas) and pool
operators (Cpos) have access to a wide variety
of global futures products that are liquid and
There are more than 150 liquid futures products across the
globe, including stock indexes, fixed income, energies, metals,
and agricultural products.
8.Cta/Cpo community is regulated and trades on
regulated futures exchanges.
Trading in a regulated marketplace builds the credibility and
trustworthiness of the CTA/CPO community.
Risk management and clearing.
9.CME Clearing institutes some of the most sophisticated
risk management practices in the financial world. As such,
it has performed flawlessly during times of economic
turbulence. In more than a century, CME Clearing has
never experienced a default.
10.Overall industry growth has been exceptional.
In the last 30 years, assets under management for the Managed
Futures industry have grown 800 fold (80,000 percent)
Abraham Investment management
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.