The $4 Billion dollar questions are how crowded can this short volatility trade get before the dam breaks? And will it amplify any such breaking?
Amid an improbable level of calm in markets, it’s worth remembering what Victor Haghani, a partner at Long-Term Capital Management, said in early 1999 about the fund’s implosion, especially given that quiet markets are compelling trading strategies that capitalize on low levels of volatility.
But even amid the gloom, managed futures was the only alternatives category to be in net positive flows, perhaps a sign that advisors have come to recognize managed-futures funds as one of the best diversifying options in a portfolio. The Year in Alternative Funds: A Bumpy Road With Some Bright Spots – (MorningStar) Money […]
For what seems to be the first time in what we can tell, there are other people out there warning investors of the dangers of Commodity ETFs. This week, the Financial Times beatifically outlined one of the many issues with these sort of products, such as $USO, $UNG, and $CORN. Investors have learnt the hard way […]
We couldn’t help ourselves but create an infographic for Star War fans to navigate the galaxy of investments. STAR WARS: THE FAN’S GUIDE TO INVESTING – (RCM’s Attain Alternative Blog) Action and connection with people in your community pays itself back tenfold in meeting our basic human need to feel useful. ‘Tis the season to […]
Managed futures, commodity trading, forex trading, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. You should not rely on any of the information as a substitute for the exercise of your own skill and judgment in making such a decision on the appropriateness of such investments.
The entries on this blog are intended to further subscribers understanding, education, and – at times – enjoyment of the world of alternative investments. Unless distinctly noted otherwise, the data and graphs included herein are intended to be mere examples and exhibits of the topic discussed, are for educational and illustrative purposes only, and do not represent trading in actual accounts. Opinions expressed are that of the author.
The mention of specific asset class performance (i.e. +3.2%, -4.6%) is based on the noted source index (i.e. Newedge CTA Index, S&P 500 Index, etc.), and investors should take care to understand that any 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.
The performance data for various Commodity Trading Advisor (“CTA”) and Commodity Pools are compiled from various sources, including Barclay Hedge, RCM’s own estimates of performance based on account managed by advisors on its books, 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 mention of general asset class performance (i.e. managed futures did well, stocks were down, bonds were up) is based on RCM’s direct experience in those asset classes, estimates of performance of dozens of CTAs followed by RCM, and averaging of various indices designed to track said asset classes.
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Managed Futures Disclaimer:
Past Performance is Not Necessarily Indicative of Future Results. The regulations of the CFTC require that prospective clients of a managed futures program (CTA) receive a disclosure document when they are solicited to enter into an agreement whereby the CTA will direct or guide the client’s commodity interest trading and that certain risk factors be highlighted. The disclosure document contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA.