Our newsletter is up, and it’s all about blood sport. The other day, a client was singing the praises of our Managed Futures Database, where users can view hundreds of different CTAs by return, max drawdown, risk adjusted ratios like Sharpe and Sortino, and so on.
“You know what I wish?” he reflected whimsically. “I wish they had a similar database for stocks. Maybe then people would realize exactly what they’re getting into when they invest.”
We had to admit, he had a point. While we’re not all that interested in building such a database, we wondered what would happen if we took some of Wall Street’s most popular stocks, you know- those traditional investments, and viewed them through the alternative investment lens where risk is just as important as return.
We’ll be the first to admit that picking stocks is very different than picking a managed futures program to invest in, and if past performance is not necessarily indicative of future results in managed futures, it’s probably even less indicative in the world of securities. Still, if stocks were held to the same standards of risk analysis- looking purely at the numbers- would they seem anywhere as attractive to investors as they do today? We thought it was worth a look.
The performance data displayed herein is compiled from various sources, including BarclayHedge, RCM's own estimates of performance based on account managed by advisors on its books, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.
Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.
Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.
Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.
Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.
RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.