On September 18, 2011 I wrote the following on my blog….Those that listened are sitting pretty http://t.co/KfGfLqzw
Benefits of Managed Futures“More efficient investment portfolios can be created by diversifying among asset categories with low to negative correlations.” -Dr. Harry M. Markowitz, Nobel Prize Economist. |
Managed Futures vs. StocksWhen viewed as an independent investment, managed futures have compared favorably with U.S. stocks, bonds, and real-estate over the past two decades. |
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Modern Portfolio TheoryModern Portfolio Theory was first introduced by economist Dr. Harry M. Markowitz in 1952 when he authored “Portfolio Selection” for the Journal of Finance. In 1990, Dr. Markowitz won the Nobel Prize for his contributions to financial economics. Although economists had long understood the common sense of portfolio diversification… |
What is a Futures Contract?Any overview of managed futures must begin with a description of futures contracts. A futures contract is a legally binding agreement designed to allow buyers and sellers to lock in a price on a well-specified good (e.g., physical commodity, fixed-income security, equity index, or currency) on a specific, forthcoming settlement date… |
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What are Managed Futures?Managed Futures describe an industry made up of professional money managers known as Commodity Trading Advisors (CTAs). With practically a zero-correlation with stocks, CTAs can add profound diversification to an overall investment portfolio by using global futures markets as an investment medium, taking positions based on expected profit potential. |
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