Why you should get involved in managed futures

Happy New Year everyone!  With the holidays behind us, I thought this would be a good opportunity to look at new business opportunities for the upcoming year.  I work almost exclusively in the managed futures space.  In speaking with brokers, I have found that they tend to be segregated into those who work primarily in transactional business, retail brokerage and…

Advantages of a traditional portfolio allocating to a volatility index

For decades, investors frequently perceived a traditional portfolio allocation in the range of 60 percent equities and 40 percent bonds for proper diversification. Since 2000 investors, both large and small, have experienced several moments of negative returns to their portfolios. This experience has enlightened many investors to seek wider portfolio diversification in attempts to reduce their correlation risk, tail risk…

Volatility and Risk

It is very difficult to separate the concepts of volatility and risk, the two are intimately intertwined. Look no further than the pending Federal Reserve rate decision at time of this writing.  Most traders have taken to the sidelines to wait for the decision from the Federal Reserve.  Will they raise rates?  Will they keep rates the same?  Will they…

Decoding the Myths of Managed Futures 2015

This paper examines seven very popular myths and misconceptions held by both retail and institutional investors regarding managed futures. This paper updates the original version written in 2011. These myths have persisted for several years. As investors are becoming more aware of the potential use of managed futures for asset allocation and portfolio diversification, knowing if the myths are true…

2014 Commodities in Review

2014 had its share of commodity headlines. With the year now completed, this is a good opportunity to review the previous year of the commodity markets. There was something for everyone as some commodity markets rallied, but many commodity markets declined in 2014. Several of the markets experienced price lows not seen in several years. The last several months of…

An analysis of why volatility indexes are relevant

Financial markets are about making decisions in moments of uncertainty. The one certainty one can make is that no one has a crystal ball, nor can anyone predict with certainty what will occur in the future. Although seeking methods to manage portfolio volatility and tail risk may fall out of fashion from time to time based on market sentiment, it…

Master of One: The Specialist CTA

Over the past 10-20 years the client/broker relationship has fully evolved from a transactional one to a consultative one and appropriately to the client’s benefit.  Where commissions and fees used to be major elements of the sales cycle, now portfolio construction and access to alpha are key selling points toward attracting and maintaining investors.  This combined with an expanding universe…

CTA Insights: Stockyard – An Overview of the Basics of Livestock

Stockyard Trading is a fundamental, discretionary program that trades strictly livestock – cattle and hogs. Like most fundamental agricultural traders, we spend a great deal of our time evaluating and formulating our outlook on these markets.  It is our experience and extensive knowledge of the commercial livestock industry that provides us an ongoing informational edge in trading these markets.  For…

CTA Insights: Novodyn Advisors on Risk Management

It’s All About Risk Bruce Schneier, an author who wrote about how we perceive danger, outlined cognitive biases people fall victim to when making decisions about risk (Housel, 2011). Although general in nature, they apply to investing, specifically diversifying, or the lack there of.  The unknown is perceived to be riskier than the familiar. Schneier’s example: “People fear kidnapping by…

Skewing Your Diversification hosted by Mark Shore

Skewing Your Diversification is an internet talk show on alternative investments hosted by Mark Shore. The show covers many topics of alternatives with a special focus on managed futures, hedge funds, commodities, currencies and futures. Stay tuned for more episodes and lots of great guests! Sunday nights the show is live-streaming at 9pm ET on www.btfd.tv To view past episodes,…