Managed Futures Investing

Managed Account Programs are a great way to get access to trading talent and performance in a more hands-off approach.

Managed Futures refer to professionally managed accounts, traded by registered Commodity Trading Advisors (CTA’s). CTA’s can go long or short, in a wide range of instruments including grains, meats, metals, interest rates, currencies, energies, and stock indices. They trade a broad range of strategies in varying time frames and offer diversification and opportunity for enhanced returns.

Managed futures traders are typically looking to capitalize on market trends that persist from supply/demand imbalances in the marketplace. With the ability to go both long and short, managed futures have the potential to profit in any economic
environment, and often perform best in crisis periods or uncertainty.

The potential to increase returns while reducing volatility

Managed futures offer a smart way to balance risk with returns. When added to a traditional stock and bond portfolio, managed future may be able to reduce overall portfolio risk and volatility while simultaneously enhancing performance, as shown in the table below.

100% US Equities1 100% Managed Futures2 Traditional (60% Equities1 / 40% Bonds3) 80% Traditional / 20% Managed Futures2
CAGR 9.65% 7.09% 8.69% 8.55%
MaxDD 50.95% 11.94% 29.86% 22.68%
Std Dev 14.64% 9.04% 9.29% 7.35%
MAR 0.19 0.59 0.29 0.38
Sharpe 0.45 0.45 0.61 0.76

Period: 1990-2014. Data used:
1. US Equities: S&P 500 Total Return
2. Managed Futures: Barclay BTOP-50 for period 1990-1999, Newedge CTA Index 2000-2014
3. Bonds: Vanguard Total Bond Index Fund (VBMFX)

Diversification beyond stocks and bonds

Managed futures have virtually no correlation to traditional asset classes such as stocks, bonds, cash, and real estate, making them a powerful tool in your diversification arsenal. And with over 150 different markets worldwide, managed futures make global diversification simple.

Investment flexibility during up and down markets

Managed futures have the potential to limit losses and generate strong returns even when the stock markets are falling or in crisis. During periods of economic stress — inflation, deflation or recession — managed futures can take long or short positions to capture positive returns.

Managed Futures during  25 Worst S&P 500 Months

Managed Futures Database

With Wisdom Trading’s managed futures database, we help you select the right professional Commodity Trading Advisor to manage your account. We’ve selected the industry’s leading managed futures programs in our database, in which you can:

  • Analyze and Download Full Performance Reports
  • Filter Programs via a Powerful Search to Fit Your Investment Criteria
  • Save Programs to a Watchlist to Track Managers
  • Build Custom Portfolios and analyze their performance

Free Access to the database:

 

Detailed Report Sheet for Each Program

Along with the program’s strategy description and manager bio, the report sheet contains detailed info, with charts and stats analysis:

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The report can also be downloaded in PDF format.

Powerful Search Functionality

Type of strategy, Risk and Return stats or portfolios composition are all filters available to refine your CTA search to match your own investment criteria amongst the hundred of funds selected by us in the database.

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Save your custom search for later use.

Create Your Own Customized Watch List

Add any managed futures programs you want to to track, and access the watchlist screen giving an overview of the latest performance.

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Simulate and Track Portfolios

Create portfolios with allocations to different CTAs from the database and/or upload your own instrument data.

portfolio

Each portfolio can be viewed in the same report format as individual funds with complete stats and analysis, and an option to download the report in PDF format.

Access the Managed Futures Database

Start searching for managed futures programs, analyze performance, create watchlists and portfolios by creating an account below.