How are profitability, volatility and risk affected when managed futures are included in an investment portfolio?
Harvard Business School Professor John E. Lintner found that including managed futures in a portfolio “reduces volatility while enhancing return.” And those portfolios “have substantially less risk at every possible level of return than portfolios of stocks, or stocks and bonds.” Research studies demonstrate that managed futures have a low or negative correlation to the stock and bond markets. Additionally, the futures markets provide profit opportunities on a highly leveraged basis in either bull or bear markets in the financial and commodity markets.
