All too often investors forget about these market corrections, and although past performance is not necessarily indicative of future performance, you can see the importance of diversification (quite frankly, I would be concerned if all my investments were tracking the S&P). Patience is starting to pay off for some of those who have kept to their allocations in managed futures with November posting their best month in more than 12 years, and with three of the top CTA indices posting double digit returns for the year.
So when you are analyzing your portfolio at the end of the year as so many investors do, ask yourself: “Do I have something that has the potential to perform in an up, down, or sideways market?” It does not have to perform every month but it should offer comfort that you do have that extra tool in the tool box; as an investor it is about being proactive, not reactive.
3 Key Notes:
- Transparent – You receive your statement daily
- No lock up period – Unlike a mutual fund, there are generally no lock up periods
- Incentive fee based – CTA’s are incentivized to perform
Click here for An Introduction to Managed Futures.