It’s strange to think that it’s been a year since the devastating earthquake first hit Japan, sending the markets roiling as a catastrophic tsunami followed up the initial destruction in Mother Nature’s 1-2 punch (with a little manmade flavor added by the nuclear reactor meltdown). At the time, the silver lining to the disaster was that it seemed like the perfect set-up to let managed futures shine via their historic crisis performance. Unfortunately for managed futures investors (but fortunately for the rest of the world), the tsunami and nuclear meltdown never turned into the full blown global economic crisis many at the time predicted it would.
At first, it was merely a matter of timing. Those clamoring for managed futures to step up to the plate in the days following the crisis were going to have to be patient. As we explained at the time:
You see, when we talk about crisis period performance for managed futures, we’re talking about periods longer than a single day, week, or even month. We’re talking about periods in which traditional investments see major shifts (2007 to 2008 is the classic example, when stocks and commodities fell over several months).
In our opinion, crisis periods have two parts. One is the crisis itself, which usually causes a reversal of the current market trend (in this case current trend was stocks, foreign currencies, commodities up; bonds and US Dollar down). The second part is the aftermath of the crisis in which new market conditions and trends emerge.
Managed futures generally outperform during the second part of the crisis, and underperform during the first part. The thing is, traditional investments usually underperform in both parts – suffering during the crisis itself, and then continuing to struggle with their long only bias.
So then we waited. And waited. And waited. The problem was that we never actually saw those strong down trends emerge. There was the initial wave of panic selling all ‘risk on’ assets, and then nothing more. And what’s worse, we actually saw a rather sharp reversal off of the post Japan crisis lows causing a good portion of the 2011 losses for managed futures.
It’s a year later, and the markets have all but forgotten about the Japanese earthquake, but what’s too often forgotten is that the people of Japan are still very much reeling in the aftermath and attempting to rebuild their lives. Our hearts and thoughts go out to the survivors as they pick up the pieces and move forward.
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.