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"Understanding Managed Futures" Powerpoint & Video clips
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What are Managed Futures?
Managed Futures is an industry that is comprised of professional money managers commonly known as Commodity Trading Advisors (CTA’s) that manages assets on behalf of their clients. They are often investing in the global futures markets such as currencies, interest rate, equity, metal, energy and agricultural markets. They are required to register with the Commodity Futures Trading Commission (CFTC), a federal government agency and are Members of the National Futures Association (NFA), a self-regulatory organization authorized by Congress in 1982.
Eight reasons why one should invest in managed futures:
At Bellwether Capital, we believe that every investment decision should be carefully considered in light of one’s financial condition and wherewithal.
1) Managed futures have often outperformed alternatives. Empirical evidence suggests that using managed futures as a means of diversification or speculation entails potentially better risk-adjusted rewards for any investment portfolio. Correlation between stocks and commodities is nearly zero, so commodity futures have often experienced positive performance during times when the US stock market was lackluster. Increased awareness of the benefits of managed futures has resulted in a more than a tripling of assets under management from $37.9 billion in 2000 to $213 billion in Q4 2009 (Source: Barclay Group, LTD). Many analysts agree that diversifying into futures improves overall performance of portfolios, especially if it is in the hands of an experienced professional.
Managed futures: CASAM CISDM CTA Equal Weighted: 2) U.S. stocks: S&P 500 Total Return: 3) International stocks: MSCI World: Source: Bloomberg: All material is property of MSCI. Use and duplication subject to contract with MSCI. Time period: 01/1980- 02/2008 For inclusion in the CISDM indices, a CTA or CPO must have a minimum of $500,000 under management and at least a 12- month track record. Past Performance is not necessarily indicative of future results. Keep in mind that these indices and website rankings have criteria and limitations associated with them.
We offer fully integrated futures trading platform. There’s full integration lets you access and trade your futures account within a signal. This gives you the best of both worlds – robust order routing and account management of futures, real-time account management, and he said Knowles advanced analytics and charting all in one application.
2) Little or negative correlation leads to better risk-versus-reward ratios. Losing a bet from flipping three quarters is statistically less likely than losing a bet from flipping one quarter. Diversification offers long-run advantages when one allocates a portion of their assets to less or negatively correlated markets with similar potentials for return. Managed futures represent potential hedges against such factors as inflation risk and business cycle movements which may adversely affect a pure stock/bond portfolio.
3) Percentage-based costs mean CTAs primarily target consistent returns. Commodity Trading Advisors (CTAs) typically have percentage-based profits as their largest source of income. Because incentive fees mean CTAs make more money when you do, they have incentives to make as much profit as possible for their investors.
4) Commodity portfolios make diversification easy. CTAs often target many markets using multiple strategies, which reduces your volatility risk. Not every investor has the ability to stare at a computer screen all day for this specific purpose. Managed futures provide every investor the opportunity to diversify through professional managers.
5) Flexibility means not being a bull or a bear. Managed futures programs are not the same as mutual funds: CTAs are not limited to only buying. They can buy and sell futures, write or purchase options, and speculate in bull or bear markets.
6) The potential for global market exposure is simple. By their very nature, commodities are markets dependent upon global factors. Furthermore, foreign exchange and index futures allow for global diversification without the need for a microscope on several thousand foreign stocks and bonds.
7) You have the ability to choose. There are many CTAs out there and they all want your business. That not only means that you can be choosy about risks and rewards, but also about capital requirements and fees/costs. You have options so find what works for you.
8) CTAs have history. The managed futures business has existed for several decades and the most consistent CTAs are the ones who have a long-term track record.
Bellwether Capital is here to Help You
Bellwether Capital has worked with many CTA’s (Commodity Trading Advisors), and are in a unique position to offer to their clientele a wide variety of CTA programs that matches each investors risk tolerance and investment objectives.
Please call us to Request a free consultation from our Managed Futures Advisors.
Risk Disclaimer: PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. BE ADVISED THAT THERE IS SUBSTANTIAL RISK OF LOSS WHEN INVESTING IN FUTURES AND DERIVATIVE MARKETS, INCLUDING MANAGED FUTURES, FUTURES OPTIONS, AND FOREX. NO SYSTEM OR CTA TRADING PROGRAM CAN GUARANTEE PROFITS OR FREEDOM FROM LOSS. THESE INVESTMENTS MAY NOT BE SUITABLE FOR ALL INVESTORS.
Bellwether Capital is legally obliged to inform investors of a potential conflict of interest in recommending CTAs, given that Bellwether Capital is compensated through fees or commissions by CTAs. This material and any views expressed herein are provided for information purposes only and should not be construed in any way as an endorsement or inducement to invest in any specific program. Before investing in any program, you must obtain, read and examine thoroughly its disclosure document or offering memorandum.
Any performance included herein is based upon information that has been compiled by Bellwether Capital from CTA disclosure documents and by third party independent CTA tracking services such as the Barclay Group, Ltd. Such information has not been independently reviewed or audited by Bellwether Capital or its affiliates and therefore neither Bellwether Capital nor its affiliates make any representation as to its accuracy or completeness.
There is a substantial high and unlimited level of risk of loss in trading commodity futures, options, options writing and off-exchange foreign currency products; such trading is not suitable for all investors. Past performance is not indicative of future results.
Oculus Trading Strategy: Managed Forex Trading Program
Managed Forex Trading via MAM (Mulit-Account Manager) is the technical solution offered by Bellwether Capital Management that allows investors to invest in the Oculus Trading Strategy Program. Here's how it works: After new clients have completed online application, provided necessary documentation and funded their account, Bellwether will be provided a Limited Power of Attorney by all the clients in that wish to take part in the Oculus Trading Stratey Program. This limited power of attorney gives Bellwether the ability to trade on behalf of our clients, and thus control a single virtual “Master Trading Account” whose equity is equal to the total amount of equity held in all the separate individual accounts. For a more detailed pf MAM methodology, please click here.
Avoid Common Trading Errors:
noun: bellwether; plural noun: bellwethers
Gain Key MAM Account Benefits:
The leading sheep of a flock, with a bell on its neck. ; an indicator or predictor of something. Synonyms: harbinger, herald, indicator, predictor "a bellwether of change"
Managed Forex Trading Accounts are becoming an increasingly popular way of accessing the forex market for retail investors,who have neither the time nor expertise to trade their own account.An investment in a Managed Forex account provides investors with the ability to profit from the currency market by having their account managed by a professional money manager, whilst at the same time having complete access to their fund, 24 hours a day.
The Oculus Trading Strategy allows Bellwether Capital Management, LP to trade your funds on your behalf for a fixed administrative fee and a fixed share of the profits. By selecting the specialized firm of Bellwether Capital for this purpose you gain access to a a sophisticated software feature that permits your account balance to be traded by an expert.
Listed below are prospective investors most Frequently Asked Questions:
Foreign currency investing differs from the stock, bond and mutual fund markets in that returns of FX investing are not normally correlated to other markets. The US equity markets have historically gone up and down with the US economy’s strengths and weaknesses. Bellwether Capital managed FX accounts may have gains consistently without regard to bull or bear market cycles in the stock or bond markets. Of course, the cash FX and FX futures markets have experienced losses. This lower correlation between the traditional equity and bond markets returns and Bellwether Capital managed FX accounts provides a valuable contribution to investor portfolios in the form of diversification. There are many articles and books that discuss the advantages of diversification into non-traditional asset classes.
No, Bellwether Capital Management is registered as a Commodity Trading Advisor (“CTA”).and a Forex firm. Hedge funds typically co-mingle client monies into a “fund” that have lock-out periods, where funds can only be withdrawn at certain times. Other hedge fund restrictions typically include higher initial minimum investments amounts (sometimes $1,000,000 to $10,000,000) and holding the clients’ funds within their largely unregulated entity versus with a registered firm. Bellwether Capital Oculus Trading Strategy Program involve funds deposited at a regulated U.S. clearing broker held in the name of the client. Furthermore, Bellwether Capital has no access to a client’s funds, only access to make investments in the account. All withdrawals are strictly under the client’s sole control. Another advantage of Bellwether Capital’s offering is that it is a completely liquid investment, which can be turned into cash in just a few days. It is important to emphasize however, that this is not to be considered a short term investment
The foreign exchange market, also referred to as the “Forex” or “FX” market is the largest financial market in the world, with a daily average turnover of approximately USD 3.5 trillion. Foreign exchange trading is the simultaneous buying of one currency and selling of another. Many of the world's currencies are on a floating exchange rate and are traded in pairs; for example Euro/Dollar or Dollar/Yen. Generally speaking, only professional traders are able to access the global FX market pricing. Others interested in trading FX generally use clearing brokers, referred to as Futures Commission Merchants (“FCM”). Bellwether Capital receives and trades its FX prices from Forex.com (Gain Capital LLC).
Oculus Trading Strategy is managed by Bellwether Capital Management, LP ,brokers in Futures, Commodities, and Foreign Exchange and a member of the National Futures Association Member The Portfolio Manager for Oculus Trading Strategy is Bellwether Capital Management CEO Aidan Doyle. Mr. Doyle has been a registered stockbroker and active trader since the late 1980s both in London and New York, along the way working with a veritable who’s who of the financial community. Mr.Doyle is also a frequent contributor to worldwide financial media, a renowned public speaker and the producer/presenter of the recently-released educational DVD “Understanding Managed Futures.” In late 2012, Mr. Doyle and Bellwether Capital Management became broadcast contributors to the Thomson Reuters Insider Network and also founded the Bellwether Daily Financial Network.
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