Why trade managed futures?
Managed futures can provide valuable diversification to a portfolio of stocks and bonds. Managed futures have been shown to provide returns with little or no relation to the stock market. Harvard Business School Professor John E. Lintner found that including managed futures in a portfolio of stocks, and in a portfolio of stocks and bonds “reduces volatility while enhancing return,” and that such portfolios “have substantially less risk at every possible level of return than portfolios of stocks, or stocks and bonds alone.” Managed futures are also attractive as a stand alone investment. Typically, the WWFS Managed Futures highlighted CTAs have outperformed the S&P 500 index.
