Author: IASG

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Commodity Trading Advisor CTA

Advantages of Separately Managed Accounts

Prudent investors like to know where their money is and how it is being used. They don’t want surprise announcements that the investment vehicle holding their money has lost 75% because of poor choices or because of a lack of management integrity.

Commodity Trading Advisor Managed Futures Education Resources

Observations On the Death of Trend Following

This paper addresses issues contributing to the underperformance of trend following programs during the investment environment of the past five years, a set of conditions that may continue for some time. As the “trend following” debate rages on, our ultimate concern pertaining to the current conundrum is whether trend following strategies are no longer profitable. While I review comments from a variety of leaders in the field, both data and comments focus more heavily on the CTA (Commodity Trading Advisor) space than on that of other fund managers. Nevertheless, details are applicable to a variety of strategies. It is my hope that a broader perspective will encourage investors to ask more pragmatic questions, ultimately improving their manager selection process.

Uncategorized

Scrooge: The Real Story

Most people know Ebenezer Scrooge as the cold-hearted, tight-fisted, “Bah, humbug!” guy from the Charles Dickens novel, A Christmas Carol. But was it really the “happiness of Christmas” that grated on Scrooge’s nerves, or was it something else that caused his foul disposition?

Certainly it wasn’t a lack of status that made Scrooge grumpy. He was rich, owned his own financial firm, and lived in a mansion. So, what was it that made him such a contemptible character?

Managed Futures Education Resources

Lintner Revisited: The Benefits of Managed Futures 25 Years Later

Dr. John Lintner, a Harvard Professor, presented the seminal paper entitled “The Potential Role of Managed Commodity – Financial Futures Accounts (and/or Funds) in Portfolios of Stocks and Bonds” at the annual conference of the Financial Analysts Federation in Toronto in May 1983. The findings of his work, namely that portfolios of equities and fixed income exhibit substantially less variance at every possible level of expected return when combined with managed futures, remain as true as ever more than 25 years later. In this brief paper, we attempt to update Professor Lintner’s work by demonstrating that the beneficial correlative properties of managed futures presented in his research persist today. We also reintroduce managed futures as a diverse collection of liquid, transparent hedge fund strategies that tend to perform well in environments that are often difficult for traditional and other alternative investments.

Managed Futures Education Resources

Top 5 List – Why Managed Futures?

Futures may be used to manage the risk of volatile investments and to capitalize on speculative opportunities associated with that volatility. But the fast-paced and increasingly sophisticated nature of futures markets sometimes renders it difficult for all but the most adept institutional and retail investors to take full advantage of these markets.

Managed Futures Managed Futures Education Resources

Choosing a CTA …

… or maybe more than one. If you’ve decided to include Managed Futures in your investment portfolio, the next step is choosing the right mix of Commodity Trading Advisors to help achieve your investment objectives. Just as managed futures help diversify an investment portfolio, different CTA programs can provide another layer of diversity within the […]

Managed Futures Education Resources

Alternative Investments

An alternative investment is an investment product other than traditional investments such as stocks, bonds or cash. Most alternative investment assets are held by institutional investors or accredited, high-net-worth individuals because of their complex nature, limited regulations and relative lack of liquidity. Some of the more common alternative investments strategies real estate investment trusts, hedge […]

Managed Futures Education Resources

Overlaying Strategies in Managed Futures: Does it Help an Investor?

I was recently interviewed for a few articles and the topic of overlaying strategies was discussed as a potential component of a managed futures portfolio. Realizing this topic is not discussed as much as it should be; it opens the door to a more in-depth understanding of managed futures. It is a topic I cover in my managed futures course at DePaul University.

Commodity Trading Advisor CTA Managed Futures Managed Futures Education Resources risk management

The Danger of Complacency

The stock market just hit an all time high and real estate values continue rising rapidly. Investors could not be happier. The day I refer to, of course, is October 9, 2007 when the S&P closed at its new record of 1565.15. What followed was a bull run in commodities culminating on July 11, 2008 when oil hit its high of $147.27 on dollar weakness and insatiable raw material demand from China. By January of 2009, oil dropped to almost $30 a barrel, the dollar was much stronger as seemingly everyone flocked to its perceived safety, and the worldwide economy would begin digging out slowly from the depths of the credit crisis. The S&P would drop below 700 points.

Managed Futures Education Resources

Reality Check

Farmers will tell you that “rain makes grain”. That often holds true, unless the rain is accompanied with winter like temperatures during the planting season in the key growing areas within the U.S. As of May 13, the USDA is reporting that 29% of the corn crop has been planted as opposed to 85% last year. For soybeans, 6% of the crop is in the ground whereas 44% is the norm. A late planting makes the crops statistically vulnerable to late season frosts and freezes. Coming off a historic year off skyrocketing prices and volatility due to a drought and supply constraints, one would think prices be reflecting the concerning delay in plantings. However, we are not seeing it so far.

Resources

Q1 2013 Market Review

As we enter the final two weeks of the first quarter of 2013 it is remarkable to see where the market has come and how steadfast it has been in getting here. It was only two months ago that traders were exiting positions for the safety of the sidelines, clients were calling to reassert risk measures, and the media was producing panic stricken headlines shouting words like “cliff” and “recession.” I must say, the arguments at the time were equally coherent regardless of your market stance. In fact they still are despite the recent highs. It did indeed seem like the sidelines were the place to be as no one wanted to be the first to wander of the looming fiscal cliff. Then just as everyone returned to work from the New Year the market decided to assert itself and the S&&P rallied 35 points and closed on the high.

Advisor Commentary

Ag Outlook

By Bryen Deutsch, Portfolio Manager, IASGPosted January 16th, 2013 One of the adages in the grain pits at the Chicago Board of Trade states “the best cure for high prices is high prices; the best cure for low prices is low prices.” Simple economic theory makes this saying understandable. When grain prices run to extreme […]

Advisor Commentary

Closing The Book On 2012

by Tyler Resch, Portfolio Manager, IASGPosted December 18th, 2012 As the temperature outside rapidly drops along with the volume in the market it is starting to dawn that 2012 truly is drawing to a close.  We entered the year on the heels of record volatility, the largest bankruptcy the futures industry had ever seen, and […]

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