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Why Managed Futures?

Because they can offer positive performance in bear markets, be a hedge against inflation, provide tactical commodity exposure, and offer tremendous liquidity and transparency.

Managed Futures refers to alternative investments which rely on professional investment managers known as Commodity Trading Advisors (CTAs), who specialize in trading exchange traded futures contracts both long and short in markets across asset classes in all corners of the world.

 

World Global

 

Performance when Stocks are Down

Futures based investments are often viewed as a way to generate oversized returns due to the leverage built into futures contracts and potential for large moves, but it is their low correlation with traditional markets which causes managed futures investments to be volatility reducers and portfolio diversifies during the bad times for traditional investments.

 

MF Stocks Crisis Period Performance
(Disclaimer: Past performance is not necessarily indicative of future results)
(Soure: Stocks = S&P 500, Managed Futures = Dow Jones Credit Suisse Managed Futures)

 

And When They’re Up…

Managed Futures struggled between 2009 and 2013 while the stock market rallied off its lows has led many to believe managed futures will always go down when stocks are going up.

But Non Correlation does not equal negative correlation, meaning there will be periods when stocks and managed futures both go up in tandem, and periods when they go down in tandem, as well as the periods where they move opposite one another.

Taking a longer perspective shows that managed futures have performed in a wide range of stock market environments, including positive performance during stock rallies.

Past Performance is Not Necessarily Indicative of Future Results

 

Market Cycle Performance Table
(Disclaimer: Past performance is not necessarily indicative of future results)
(Source: World Stocks = MSCI ex US, Bonds = Barclays Aggregate, Hedge Funds = DJCS Hedge Fund Index, Managed Futures = Newedge CTA Index)

Transparency & Liquidity

With investments such as distressed debt and practices such as gates, lockups, and length required holding periods; many alternative investments suffer from a lack of transparency into positions and inability to quickly cash out of the investment should the need arise.

Managed Futures use of exchange traded futures creates investments which are highly transparent and liquid, with exchange markets having universally accepted settlement prices posted each day and the exchange guaranteeing the counterparties on the other side of any trades through the use of performance bonds held at the clearinghouse. This results in positions accurately priced minute by minute (transparency), and the ability to convert positions into cash within days (liquidity).

 

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Learn More

Access Top Managed Futures programs via our Family of Funds.

There is no guarantee that any investment product will achieve its objectives, generate profits or avoid losses.

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The risk of loss in trading commodity futures contracts, whether on one's own or through a managed account or pooled ‘fund’, can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. You may sustain a total loss of the investment. The information contained within this website is provided to present general information on our services and managed futures platform, and is intended for informational purposes only. It should not be viewed as a solicitation for any specific fund, which requires investor qualification as an accredited investor and the receipt of an offering document. Futures trading and investments in such trading is not suitable for all investors. You should not rely on any of the information as a substitute for the exercise of your own skill and judgment in making such a decision on the appropriateness of such investments.