Payam Pedram Explains the Benefits of Managed Futures A Managed Futures account is an alternative investment strategy which depends on the trading of professional investment managers referred to as a Commodity Trading Advisor (CTA). The trader concentrates on commodity futures and trading options. Managed Futures investments can also be known as CTA programs or Managed Futures Accounts.
CTAs offering this sort of asset class are required to be registered using the National Futures Association (NFA) and also the Commodity Futures Trading Commission (CFTC), what are the regulators for your industry. The NFA and CFTC keep a close eye on every registered member and require members to file updated disclosure documents regularly.
A Managed Futures account provides ability to go both long and short, because they are highly flexible financial instruments, that allow for the potential to profit from rising and falling markets. Moreover, managed futures funds have almost no correlation to traditional asset classes, enabling these to enhance returns in addition to lower overall volatility. “Recent development in managed futures continues to be substantial. In 2002, it had been estimated that more than $45 billion was under management by managed futures trading advisors. Towards the end of 2007, that number had grown to greater than $200 billion.”
Payam Pedram With more recent volatility and uncertainty within the real estate markets, managed futures have gained lots of interest. As traditional management of your capital strategies, specifically “buy-and-hold” demonstrated their lack of ability to ensure long-term gains, a more active way of investing is now more favorable. Unlike passive management, managed futures are an actively managed investment strategy where positions are closed and opened with a considerably faster rate.
The futures companies are another gateway to sign up within the exciting and lucrative market of commodities. With the much interest being directed towards the metals space during the last year, investing some of one’s portfolio in gold, silver, or copper enables speculation on in which the price will be in the near future. Soft commodities such as wheat and cotton have hit the headlines lately also. With major news breaking during the last year and multiple stories of current and future shortages coming, the soft commodities space may serve as a fantastic destination to be invested in.
The advantages of Managed Futures in a balanced portfolio are:
1. Potential to lower overall portfolio risk
2. The ability to enhance overall portfolio returns
3. Diversifications among numerous asset classes
4. Opportunity to profit in a number of economic environments
5. Capping losses by implementing different trading strategies and disciplines
Payam Pedram For a detailed analysis of your portfolio and whether you are able to make the most of Managed Futures please contact Payam Pedram.
http://www.ascendantasset.com About Payam Pedram
Payam Pedram is really a founding member and CEO of Ascendant Asset Advisors, Inc. He was approved as a Principal of AAA on April 22, 2005. He registered with the CFTC as a possible Associated Person and a NFA Associate Member on June 6, 2005. Pedram can also be registered with the California Department of Corporations as an Investment Advisor Representative. He could be a Microsoft Certified System Engineer, plus a graduate of Pepperdine University using a degree in Management. Also, he posseses an MBA from Pepperdine University using a dual emphasis in Finance and Dispute Resolution.
Past performance isn't an indication of future results. Trading in futures and options is speculative and not ideal for all investors. A trader could very well lose more fat compared to the wind turbine. Before investing, one must evaluate the newest disclosure document of ascendant asset advisors, inc.
The risk of decrease in trading commodities may be substantial. You should therefore consider whether such trading works for you in light of your finances.