Ten Reasons Why Managed Futures and Trend-Following CTAs are a Smart Investment for Your Portfolio

March 29, 2023 rcm-alternatives 0 comment Like

Commodities, Trend Following and Systematic Strategies

Our friends over at Auspice Capital Advisors are out this week with a banger of a paper – titled, “Managed Futures and Trend Following CTAs — Ten Reasons to Invest”.

You can download the full paper here to see all their great graphics along with the list, but here are a few of our favorites from the list:

1. The biggest and brightest investors in the world use CTAs: Sovereign wealth plans and pensions have used CTAs for decades. Recently, many pensions have created more specific “Risk Mitigation” and “Crisis Risk Offset” portfolios, with CTAs making up the biggest allocation.

2. They tend to do well in Crisis Periods: We’ve been banging this drum for as long as you can remember (see our infographic here and Why Managed Futures page here, but Auspice ups the ante with a bigger/better list of crisis periods

3. Inflation Protection: With most CTAs heavily invested in commodities, it’s no wonder they can and do provide inflation protection. We cover this in a section of our ‘Guide to Trend Following’ whitepaper (download here), and Auspice does a nice job of putting some numbers to it based on CPI:

Those are just a few of their ten reasons. Check out the full paper here.

And we couldn’t agree more with their list and approach, having seen at RCM Alternatives firsthand for more than 20 years the positive impact managed futures and trend-following CTAs have had on investor portfolios. To talk with one of our managed futures specialists, call (855) 726-0060 today.

And make sure to check out these additional resources:

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.

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See the full terms of use and risk disclaimer here.

Disclaimers
RCM Ag Services is a registered DBA of Reliance Capital Markets II LLC. Trading futures, options on futures, and retail off-exchange foreign currency transactions are complex and involve substantial risk of loss and are not suitable for all investors. Loss-limiting strategies such as stop loss orders may not be effective because market conditions or technological issues may make it impossible to execute such orders. Likewise, strategies using combinations of options and/or futures positions such as “spread” or “straddle” trades may be just as risky as simple long and short positions. There are no guarantees of profit. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge and financial resources. You may lose all or more than your initial investment. You should not rely on any of the information herein as a substitute for the exercise of your own skill and judgment in making such a decision on the appropriateness of such investments. Opinions, market data and recommendations are subject to change without notice. Reliance Capital Markets II LLC shall not be held responsible for any actions taken based on this website or attached links. Parties acting on this electronic communication are responsible for their own actions. Past performance is not necessarily indicative of future results.