October 6, 2022
rcm-alternatives
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Ray Dalio dominated the hedge fund headlines recently saying he, the founder of the world’s largest hedge fund, is stepping back from leadership in favor of three CIOs. Dalio is rightly famous for his success by multiple measurements. We’ve paid attention to his All Weather portfolio and written about their funds in the past here and here, mainly talking about how they are usually misclassified as a managed futures program when the industry assets are tallied.
But with all the praise for how well Pure Alpha is doing this year, we can’t help but remind people that many managed futures programs are also shooting the lights out. Here’s a look at some worthwhile alternatives that may meet or beat this whale. Not to mention, they are all more accommodating to new investments.
Now, you may say this isn’t a fair comparison – including these commodity-loving managed futures programs’ YTD performance, which has undoubtedly been above average thanks to 1. Huge run-up in commodities to start the year, and 2. The huge run down in bonds and currencies once the commodities stopped. But that’s why we’re also looking at the compound annual rate of return of each (Comp RoR) as compared to Bridgewater’s Pure Alpha and looking back as long, if not longer, in many cases (the 1980s and 1990s).
How do these managed futures programs identify and capture trends? How can you access it then? Download our Guide to Trend Following to learn more about the strategy and details on many of the managers above. And as always, you can browse top performers YTD, best programs by Compound RoR, best by Sharpe ratio, and more by registering for our database.
And while we’re at it – let’s not forget that Bridgewater’s All Weather strategy hasn’t exactly protected investors from the rain this year as the name would imply. It’s surely been a very difficult year with stocks and bonds falling in tandem. But isn’t that the point? That’s just the sort of cloudy weather we want an all-weather to protect against.
Here are some of our favorites in the All-Weather space which have been much more protective during this storm:
Sign up for our blog digest here to stay up to date on these funds, or call one of our team at (855) 726-0060 to talk through the details on these programs and more.
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.
The programs listed here are a sub-set of the full list of programs able to be accessed by subscribing to the database and reflect programs we currently work with and/or are more familiar with.
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. Individuals cannot invest in the index itself, and actual rates of return may be significantly different and more volatile than those of the index.
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.
Limitations on RCM Quintile + Star Rankings
The Quintile Rankings and RCM Star Rankings shown here are provided for informational purposes only. RCM does not guarantee the accuracy, timeliness or completeness of this information. The ranking methodology is proprietary and the results have not been audited or verified by an independent third party. Some CTAs may employ trading programs or strategies that are riskier than others. CTAs may manage customer accounts differently than their model results shown or make different trades in actual customer accounts versus their own accounts. Different CTAs are subject to different market conditions and risks that can significantly impact actual results. RCM and its affiliates receive compensation from some of the rated CTAs. Investors should perform their own due diligence before investing with any CTA. This ranking information should not be the sole basis for any investment decision.
See the full terms of use and risk disclaimer here.
