We received this question from one of our readers the other day, and it’s a deceivingly simple little question that’s a lot more difficult to answer than you might think. For starters, do you mean how much AUM does managed futures hold? Is that after applying notional funding? What about Managed futures compared to the rest of the futures industry when it comes to trading volume? We break down the numbers.
Category: Managed Futures
08
Oct
2013
The 2 Important Drawdown Measurements: How Deep, How Long?
We’ve been frequently discussing drawdowns in the managed futures space… and that got us thinking, even though the finance world commonly tosses around the word drawdown, does everyone know the difference between the Drawdown figures commonly tossed around (-25%, -12%, etc) and the Drawdown Duration – which is measured in months, not percentages? And even then, are they using the Max Drawdown Duration in the right context?
07
Oct
2013
Active vs Passive Commodity Exposure — September
Our monthly chart tracking various commodity futures and their ETF’s counterparts is out. We compare them side by side as if you were buying and holding each one since the beginning of the year. But the key for us is looking at how long/short commodities (or tactical commodities, or active commodities – as they are sometimes called) fared against this buy and hold strategy . Take a look.
04
Oct
2013
3 Reasons XLE isn’t the Inflation Hedge you’re looking for
We’re not regular readers of the Seattle times, but when a client saw managed futures mentioned in a recent Q&A in the investing section – they pointed us to the piece… The reader says they were considering investing in managed futures, but wanted the columnists’ advice first. The columnist responds by stating that managed accounts are only good for managers and not for anyone else, instead suggesting investing in the XLE energy based ETF. Let’s take a look at a side by side comparison to see which one is better, shall we?
01
Oct
2013
Government Shutdown: No CFTC, but SEC stays open
It’s day one of the government shutdown, and the impacts are far reaching… We take a look at how this is affecting the futures industry from a regulatory standpoint, and the unpredictable markets. Plus, a list of federal employees allowed to work, and government shutdown pick up lines.
30
Sep
2013
Morningstar’s Nadia Papagiannis Demystifies Alternatives:
The highlight of last week’s Alternative Investments Conference for us was definitely Morningstar’s Nadia Papagiannis presentation titled, “Demystifying Alternatives: The ABCs of Alternative Assets, Strategies and Vehicles.” We have to hand it to her, she’s a pro when it comes to alternatives. Since Managed Futures got some of the spotlight, we are reviewing definitions, perceptions, allocation, and our takeaway.
26
Sep
2013
A Trend Following Trend Line
It’s always nice to got positive feedback from our latest newsletter, and it’s even better when they provide some of their own data to continue to conversation of Managed Futures in it’s drawdown period.
25
Sep
2013
No… Not all Floor Traders Are Losers
If you want to see some broken men complaining about computers – the movie FLOORED is definitely worth watching.
24
Sep
2013
Alternative Investment Conference Spotlights Managed Futures
We just couldn’t get enough of the conference action last week with the NIBA and the CTA Expo, and spent the beginning of this week exploring what the “Alternative Investments Conference” has to offer. Here are some highlights from day including the discussion of whether alternative investments should receive a larger portion of portfolio allocation:
23
Sep
2013
5,000 Bushels of Corn on your Lawn
The comment that will never die when having a conversation with people unfamiliar with managed futures and commodities trading is something along the lines of, “So, you ever get a truck full of Corn delivered to your house?” The short answer is no. commodity futures contracts have a finite life, so you don’t actually trade “Corn Futures” but a contract month for Corn. Most of the market is now speculators, and end with cash settlements, and no physical delivery.
