Sure, we’ve all heard about the benefits of managed futures, i.e. their supposed ability to generate returns in periods of crisis. Jon Sundt, president and CEO of Altegris, referred to it as “crisis alpha,” during the Managed Futures Forum held today in New York. Just look at 2008; the Barclay CTA Index, which tracks 565 managed futures programs, returned 14.09 percent in 2008, as every other asset class was under water.
But the majority of managed futures managers are trend followers, meaning they react to price movement and ride trends, Sundt said. They don’t try to make a prediction about where the markets are headed. The hard part if knowing you’re in a trend when it’s happening, Sundt added………………………………………..Full Article: Source