A Managed Futures account is definitely an alternative investment strategy which relies on the trading of professional investment managers known as a Commodity Trading Advisor (CTA). The trader specializes in commodity futures and options trading. Managed Futures investments are also known as CTA programs or Managed Futures Accounts.
CTAs that provide this type of asset class are required to be registered with the National Futures Association (NFA) and also the Commodity Futures Trading Commission (CFTC), what are regulators for your industry. The NFA and CFTC keep a close eye on every registered member and require members to launch updated disclosure documents regularly.
A Managed Futures account provides the ability to go both long and short, as they are highly flexible financial instruments, which permit for your possible ways to benefit from rising and falling markets. Moreover, managed futures funds have almost no correlation to traditional asset classes, enabling these to enhance returns in addition to lower overall volatility. ⤽Recent development in managed futures has been substantial. In 2002, it had been estimated which more than $45 billion was under management by managed futures trading advisors. In the end of 2007, that number had grown to greater than $200 billion.â¤
Payam Pedram
With additional recent volatility and uncertainty in the real estate markets, managed futures have gained a lot of interest. As traditional money management strategies, specifically ⤽buy-and-hold⤠demonstrated their lack of ability to ensure long lasting gains, a more active method of investing is now more favorable. Unlike passive management, managed futures are an actively managed investment strategy where positions are opened and closed in a faster rate.
The futures marketplace is additionally a gateway to participate in in the exciting and lucrative market of commodities. With so much interest being directed on the metals space within the last year, investing a few of one⤙s portfolio in gold, silver, or copper enables speculation on in which the price will be in the near future. Soft commodities including wheat and cotton have hit the headlines recently as well. With major news breaking in the last year and multiple stories of current and future shortages coming, the soft commodities space is a thrilling place to be invested in.
The advantages of Managed Futures in the balanced portfolio are:
1. Potential to lessen overall portfolio risk
2. The capability to enhance overall portfolio returns
3. Diversifications among numerous asset classes
4. Opportunity to profit in a variety of economic environments
5. Capping losses by implementing different trading strategies and disciplines
Payam Pedram
To get a detailed analysis of your portfolio and whether you can benefit from Managed Futures please contact Payam Pedram. http://www.ascendantasset.com
About Payam Pedram
Payam Pedram is a founding member and CEO of Ascendant Asset Advisors, Inc. He was approved like a Principal of AAA on April 22, 2005. He registered using the CFTC being an Associated Person plus a NFA Associate Member on June 6, 2005. Pedram is also registered with the California Department of Corporations as an Investment Advisor Representative. He is a Microsoft Certified System Engineer, along with a graduate of Pepperdine University using a degree in Management. Also, he comes with an MBA from Pepperdine University using a dual emphasis in Finance and Dispute Resolution.
Past performance just isnt indicative of future results. Trading in futures and options is speculative and not suitable for all investors. An investor could possibly lose more fat compared to initial investment. Before investing, you must review the newest disclosure document of ascendant asset advisors, inc.
The potential risk of loss in trading commodities can be substantial. You should therefore consider whether such trading is suitable to suit your needs considering your financial condition.
