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Allocating to Managed Futures

While allocating to managed futures can provide excellent non-correlated diversification opportunities, it is a complex and specialized field that requires a deep and equally specialized understanding of how and where to invest. Altegris has industry experience and powerful analytical tools that can help you find and select what believe are quality CTAs, build out your portfolio, and closely monitor your investments.

Commodity Trading Advisors

Managed futures are alternative investments that allow investors to access the world's futures markets through the services of professional money managers known as commodity trading advisors (CTAs). Many CTAs are highly specialized and trade only in their area of expertise, while others focus on the advantage of trading a broad, diverse range of opportunities.

Historically Low Correlation to Traditional Investments

One of the main reasons many investors believe in incorporating managed futures into their portfolio has to do with correlation. As a whole, managed futures programs have historically been negatively correlated with equity indices in months when equity returns have been negative, and positively correlated when equity returns are positive.¹ Dr. John Lintner of Harvard University concluded that "the combined portfolios of stocks after including judicious investments in managed futures accounts show substantially less risk, at every possible level of expected return, than portfolios of stocks (or stocks and bonds) alone."² Correlations are subject to change. There is no guarantee that the addition of alternative investments to a portfolio will increase returns or avoid losses.

View Interactive Historical Performance Charts

Frequently Asked Questions About Managed Futures

Managed Futures Specialists - www.ManagedFutures.com

Visit www.managedfutures.com for more information about allocating to managed futures, or call us at (800) 828-5225.

1. Burak Cerrahoglu and Dulari Pancholi, "The Benefits of Managed Futures," Center for International Securities and Derivatives Markets, March 2003.
2. Dr. John Lintner, "The Potential Role of Managed Futures Accounts in Portfolios of Stocks and Bonds," 1983.

Managed Futures Specialists

If you would like more specific information on managed futures, please visit managedfutures.com, the corporate website for International Traders Research, Inc., one of the Altegris Group of Companies.

International Traders Research, or ITR, maintains one of the most comprehensive databases of Commodity Trading Advisors available today.

Register Today

Registration is the first step to get started. Register for membership today, and receive free reports and information about alternative investments.

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Alternative investment products, including hedge funds and managed futures, involve a high degree of risk, often engage in leveraging and other speculative investment practices that may increase the risk of investment loss, can be highly illiquid, are not required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as mutual funds, often charge high fees which may offset any trading profits, and in many cases the underlying investments are not transparent and are known only to the investment manager. Alternative investment performance can be volatile. An investor could lose all or a substantial amount of his or her investment. Often, alternative investment fund and account managers have total trading authority over their funds or accounts; the use of a single advisor applying generally similar trading programs could mean lack of diversification and, consequently, higher risk. There is often no secondary market for an investor's interest in alternative investments, and none is expected to develop. There may be restrictions on transferring interests in any alternative investment. Alternative investment products often execute a substantial portion of their trades on non-U.S. exchanges. Investing in foreign markets may entail risks that differ from those associated with investments in U.S. markets. Additionally, alternative investments often entail commodity trading, which involves substantial risk of loss. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

Altegris, a FINRA and NFA member, offers various alternative investments, including hedge funds, futures funds and managed futures and commodities accounts, that may operate in commodities markets and foreign markets, among others. Altegris and/or its officers/partners may have a financial interest in such alternative investments. In working with clients, Altegris acts in its capacity as an SEC-registered Broker-Dealer and/or as a CFTC-registered Introducing Broker. Although Altegris may give advice that is incidental to its brokerage services, it is not an Investment Adviser. When acting as an Introducing Broker for individually managed accounts, Altegris receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. CTAs may also pay Altegris a portion of the fees they receive from accounts introduced to them by Altegris. When acting as a Broker-Dealer, Altegris enters into selling agreements with hedge funds and futures funds that it offers (including funds sponsored by affiliates), pursuant to which Altegris, with respect to the interests it sells, is paid a portion of the management and/or performance fees charged by the funds or their managers in respect of those interests. This enables Altegris to offer hedge funds, futures funds and individually managed accounts without charging fees above those charged by the CTAs, funds or managers.