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.

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