Managed Futures are alternative investment programs designed to provide clients the ability to diversity beyond traditional assets. Additionally, they provide the added benefit of reducing overall portfolio volatility and protection against strong market declines.
Managed Futures have the potential to provide returns regardless of the current economic environment whether it be bull or bear markets. Most people look for the stock market to go up. Managed Futures may do well in bear markets because they employ short-selling strategies that allow them to take advantage of downward momentum in the market. When used in conjunction with traditional asset classes, they have potential to reduce risk, while at the same time potentially increasing returns.