Why Managed Futures
Managed futures as an asset class is increasingly being recognized as an important investment alternative that can potentially enhance the returns and lower the overall volatility of a portfolio.
Although futures investments involve substantial risk and are not suitable for everyone, the introduction of managed futures to an investment portfolio can both reduce risk and enhance performance.
Six Benefits of Managed Futures
A Cautionary Note
One of the popular strategies amongst CTAs is the sale of naked options. This strategy tends to work in periods of relatively low volatility, however when volatility spikes, the strategy frequently results in disaster. We therefore suggest that investors intent on allocating funds to CTAs employing such strategies do so with a small portion of their portfolio or as part of an overall blended portfolio of varied trading styles to diversify holdings in hopes of offsetting such risks. Your Dorman Managed Futures specialist can assist you in creating such blended portfolios.