Managed Futures are on the up and up and might be something to consider adding to your holiday shopping list of potential investments for 2015.
Managed Futures as a whole gained a lot of attention during 2008 when many of the Commodity Trading Advisor (CTA) indices were able to produce very impressive returns. Since then, Managed Futures have struggled in comparison to the relentless stock market which continues to rally to record highs on top of record highs.
Investors have become complacent in the sense that they are comparing managed futures to the broad market. No doubt it has lagged the S&P 500 (CME:ESZ14), but don’t you want your alternative investment to show little correlation to the stock market? This is the exact comparison you do not want to make when diversifying your portfolio, alternatives are meant for a small allocation, and something that has the potential to perform in an up, down, or sideways market. Below is a table that lays out the performance of the BTOP 50 CTA vs. the S&P 500 during the 15 worst quarters.