When you’re a managed futures nerd, nothing is more perplexing than behavior contrary to data. We’re more than familiar with the return and risk metrics that make the case for managed futures as a portfolio diversifier (and publically share such any chance we get), yet the bulk of advisers still seem to shy away from recommending the asset class to their clients. In lieu of scratching our heads from now until eternity, we decided it was time to do some digging.
So we began to listen. We started asking registered investment advisers- those people that investors pay to manage their investment portfolios- what they need to see when they start making allocation decisions. What we quickly learned is that there is no black and white answer that is universally accepted. Generally speaking, there were three camps when it came to investment selection: those that believed in performance relative to cost, those that believed in risk and return analysis, and those that believed in cycle performance analysis.
Unfortunately, the answer left us more confused than ever, as managed futures fits the bill under each of these paradigms. The only conclusion we could reach was that no one was breaking the numbers down in a concise manner and sharing the results with such advisers, which is just the sort of challenge we revel in.
Click here to see what we found.
The performance data displayed herein is compiled from various sources, including BarclayHedge, 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.