This week, Attain’s publications ask a seemingly simple question: why alternatives? It seems easy enough; just two words, five syllables. The problem is that the answer to this question cannot be understood in a short time-span, and even after years of market research, collaboration, and conversation, there is one question we struggle with even more: why not alternatives?
We work with institutional investors, funds of funds, and RIAs, at no additional cost to them, to help meet their portfolio diversification needs through managed futures. We like to think we’ve got a pretty good system in place. Managed futures isn’t going to be right for everyone, but what is truly befuddling to us is the number of qualified, well-suited investors who have dismissed the asset class altogether – or worse – settled for an “alternative” where the only alternative thing about the investment is the way the marketing describes it.
We get it, to some extent. The word “alternative” is often associated with terms like “risky” or “dangerous,” which isn’t exactly what you want to hear when you’re looking for a long-term investment strategy. While we won’t tell you there’s no risk in alternatives, we will say that there is risk in every single investment you make. At the end of the day, it’s not a matter of avoiding risk; it’s about managing risk. This distinction is one that is all too often lost in the conversation with investors.
This week, the Attain team will be in attendance at three different financial conferences – the SkyBridge Alternatives Conference (SALT), the Chartered Finance Analyst Institute National Conference (CFA), and the National Association of Personal Finance Advisors National Conference (NAPFA) – and speaking with professionals from every corner of finance to find out why they use alternatives, with a goal of taking away some of the stigma that hangs around the term “alternative.” But we’ll also be asking another question of those who are not investing in alternatives – why not?
For us, and them, that may be the most important question of all.
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.
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