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

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:

  1. Your Guide to Trend Following (whitepaper)
  2. 7 crisis period infographic
  3. RCM’s The Derivative Trend/Systematic episode playlist
  4. A Dozen Trend/CTA resources you didn’t know you needed… until now!

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.