Whats Been Responsible For Growth In Managed Futures Trading?
Several factors have impacted growth: First, as traditional markets have become increasingly volatile and vulnerable to unexpected eventsinstitutional money management and other sophisticated investors have sought to more effectively manage overall portfolio risk through diversification. Indeed, risk and diversification are major concerns in todays market environment. Secondly, many investors are seeking higher rates of return. A number of studies indicate that a portfolio that includes managed futures can yield appreciably higher and more stable returns over time than a portfolio that includes only stocks and bonds. The same evidence indicates this can be achieved without added portfolio risk. Still another factor in the growth of managed futures has been the tremendous broadening of futures on a global basis to encompass stock indexes, debt instruments, international currencies, and options as well as conventional commodities including metals and energy. These new investment vehicles
