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Alternative Market Briefing

Managed futures' global diversification is important in next phase of economic recovery

Monday, August 25, 2014

Komfie Manalo, Opalesque Asia:

The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return investment management, specializing in systematic managed futures and equity market-neutral strategies.

Campbell said in its briefing entitled, Managed Futures: The Next Five Years, "The next five years may look like the last five, in which U.S. equities, real estate and commodities all performed extremely well, or perhaps they will look like the prior five years, when all three strategies incurred significant losses, and managed futures strategies performed well. Regardless, at Campbell we believe in the ability of our portfolio to provide our investors with both attractive risk-adjusted returns and portfolio diversification. We are looking forward to the next few years."

The paper said that comparing the performance of the CTA Index to that of a put option provides an interesting but limited perspective on recent strategy returns. The perspective is limited because, in addition to providing portfolio diversification, managed futures also seek to provide attractive stand-alone risk-adjusted returns. From that perspective, the strategy has recently......................

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