A managed futures account is an investment portfolio consisting of futures and commodity investments in which the account is funded by an individual, but managed by an investing professional, such as a broker, CTA or another entity.
At RJO Futures our commodity brokers work with individual and institutional investors to define their ideal risk/reward profile to understand which licensed Commodity Trading Advisors (CTAs) offer the most potential to help you achieve your unique investment goals. Several investors add Managed Futures to their portfolio because they:
- Enhance return and lower overall risk through their positive diversification effects when added to a portfolio of traditional assets
- Are strategically non-correlated or uncorrelated with traditional equity and bond investments
- Can be used as a tool to outperform traditional assets while limiting drawdowns due to their flexibility of both going long (buying) or shorting (selling) the market
- Are leveraged investments
- Offer a lower probability of serious damage in systematic crisis due to smoother positive returns