What has been responsible for the growth in managed futures?
A variety of things. As traditional investment markets have become increasingly volatile and vulnerable to often-unexpected events, institutional money managers and other sophisticated investors have sought to more effectively manage overall portfolio risk through diversification. A number of studies indicate that a portfolio that includes managed futures can yield appreciably higher and more stable return over time than a portfolio that includes only stocks and bonds. The same evidence indicates this can be achieved without added risk, or even reduced risk. Still another factor in the growth of managed futures has been the tremendous broadening of futures markets to encompass stock indexes, debt instruments, currencies, and options as well as conventional commodities. This has created whole new categories of profit opportunities. The increasingly global nature of today’s futures markets also has expanded the scope of investment opportunities. Finally, from the standpoint of an individ
