Managed futures accounts run by commodity trading advisors (CTA's) are increasingly becoming an important investment alternative for both individuals and institutions, says Adam Rochlin, the head of MF Global's alternative investment strategies business in New York.
They give access to sophisticated strategies like global macro and high frequency trading to individuals and smaller institutions that can't afford the astronomical cost of running their own high tech 24 hour global trading desks. They can also give you a convenient vehicle for pure commodity exposure, like in energy and the grains, without having to endure the management risk of indirect stock plays. The managed futures industry certainly delivered the goods in 2008, the year from Hell, when they brought in double digit returns, while every global stock index was crashing.
The big new issue is transparency, which CTA's deal with handily by executing trades in accounts still under the investor's direct control, instead of asking for funds to be wired to a distant unknown custodian. As the futures markets never shut down throughout the financial crisis, liquidity was never a concern.
You can learn more about managed futures accounts by contacting Adam directly at 212-319-1375, or by e-mailing him at [email protected]
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