Managed Futures
What are Managed Futures?
Managed Futures are to commodities, what mutual funds are to
stocks. See
PowerPoint Slideshow here.
The mutual fund manager selects (for example) a basket of stocks such as Apple, IBM, Google etc. As these stocks go up and down, so does each share of the mutual fund. If the stock market has a large correction, the fund manager can dump the stock or hold on. In 2008, most mutual funds lost money. The S&P dropped 38.5% and even commodities dropped 46%. How did your portfolio do, managed Futures were up almost 15%!
Managed Futures are run by a Certified Trading Advisor (CTA). The CTA has a big advantage over a mutual fund manager. In a down market, a CTA can short the futures market and make money in a futures position that gains value as the market falls. The CTA can also sell call options above the market and buy puts below the market to increase value on a market correction. This is why in 2008 commodities performed poorly, but managed futures, as an asset class, performed well… some CTAs were able to take advantage of the falling commodity prices and post gains for the year. ACE Investments SIHA program actually GAINED almost 13% in 2008. It then followed that up with a 50% gain in 2009!
Chicago Board of Trade brochure on Managed
Futures.
Click Here.
Chicago Mercantile Exchange brochure on Managed Futures.
Click Here.
How did Managed Futures do versus the stock market during other big market corrections? Since 1987, every large stock market drop has seen Managed Futures do better than stocks EVERY TIME. Managed Futures can profit during rallies or sell-offs. Read here.
Are Managed Futures taxed the same as stocks? No they aren't. Managed Futures have definite tax benefits. Read here.
What type of account is needed? Managed Futures can be traded in a 401k, SEP-IRA, trust account or any other type of self directed account. We utilize Millennium Trust Company as the trustee.
What CTA's do you suggest?
ACE Investment
Strategies, Yu-Dee Chang CTA
ACE Investments offers many trading programs, I am
partial to a couple. I really like his new
Diversified Commodity Program (DCP).
This strategy will place higher focus on commodity markets. This strategy grows out of the ACE Diversified Premium Collection
Strategy (DPC) which has been traded since 2004 and had a gain of
111.47% in 2009. BarclayHedge.com had it ranked among the top CTA
program's in 2009.
View here.
ACE Investments Stock Index Hybrid Approach (SIHA) actually had gains in 2008 when almost everything else was getting battered.The focus of this strategy is on stock indices.
We also offer...
John W. Henry
Company, CTA
If you are familiar
with
John W Henry, he is one of the industries ALL-TIME
greatest traders. So good, he bought the Boston Red Sox with
money he made from trading commodities.
Call us now for more info at 1-800-780-7001
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