Alternative Links: Human vs Robot

Only rarely — if at all — will the [outcomes] favour the continued employment of a man over a model of a man,”

Technology outsmarts the human investor – (FT)

 

When an institution allocates to a momentum strategy in the hope of cushioning itself from stock market downdraughts it is really commissioning someone to sell stocks on its behalf into a falling market; no different to the failed portfolio insurance strategy that was implicated in the 1987 crash,” he wrote. Mr Harding declined to comment beyond the letter.

Rise in new form of ‘portfolio insurance’ sparks fears – (FT)

 

Consequently, many retired investors have embraced alternatives within their portfolios, and perhaps there is no greater diversified asset class than managed futures. Let’s look at the basics.

Money Talks: Keeping an eye on the prize – (Marco Eagle)

 

A mob of trend-followers is eroding the advantage that quantitative analysis usually provides to short-term equity trading strategies more quickly than normal, according to research from Bank of America Corp.

Quants Are Eating Away at Wall Street’s Edge – (Bloomberg)

 

In this analysis we compare the classic 60/40 portfolio with other asset classes and explore the diversification benefits of adding managed futures by looking at the returns of a blended portfolio consisting of 33% global bonds, 33% global equities and 33% managed futures.

The bell tolls for 60/40: adding managed futures to the mix – (City Wire Selector)

 

The US$261.0 billion CTA/managed futures mandated hedge fund industry saw the highest net investor inflows among strategic mandates for 2017 (US$8.4 billion)

AUM for the North American hedge fund industry has reached a record high of US$1.52 trillion – (ValueWalk)

 

Notice the very low correlation between the returns of the top ten trend following funds when compared to the S&P500 Total Return Index. This is a very well known feature to portfolio managers who are looking at generating superior risk weighted returns by allocating some % of their total portfolio to this alternative investment class.

Review of Established Trend Following Fund Managers – (Richard Brennan)

 

The different types of financial risks to beware of is long: permanent loss, longevity, liquidity, etc. but I’d argue for just about everyone volatility should be included in this list as well.

Contradicting Warren Buffett: When Volatility is Risk – (Cordant)

 

Currently, there is approximately $45 billion invested in alternative ETFs, according to Morningstar – just 2% of total ETF assets.

Alternative ETFs: The Future is Bright – (ETF Trends)

 

Iowa has roughly 88,000 farms and 129,000 farm operators. According to the U.S. Department of Agriculture’s 2012 Census of Agriculture, more than 97 percent of Iowa farms are owned by families.

No, Really, Iowa’s Farms are Almost Entirely Family Owned – (Iowa Ag News Connection)

 

Disclaimer
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.

See the full terms of use and risk disclaimer here.

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