What kind of investment opportunities exist in the managed futures universe?
The benefits of managed futures within a well-balanced portfolio include the following: • Potential to lower overall portfolio risk. The main benefit of adding managed futures to a balanced portfolio is the potential to decrease portfolio volatility. Risk reduction is possible because managed futures can trade across a wide range of global markets that have virtually no long-term correlation to most traditional asset classes. Moreover, managed futures programs have generally performed well during adverse economic or market conditions for stocks and bonds, thereby providing excellent downside protection in most portfolios. But remember, futures and options trading involves substantial risk of loss and is not suitable for every investor. • Opportunity to enhance overall portfolio returns While managed futures can decrease portfolio risk, they can also simultaneously enhance overall portfolio performance. Research indicates that adding managed futures to a traditional portfolio improves o
