The Top 5 Managed Futures of 2011
Before we reveal the best managed futures programs today, itâ€™s important to understand what factors make a great managed future. Here are the key criteria for the top 5 managed futures were ranked on.
1. Positive Returns Every Year Including Market Crash of 2008 Because so many investment programs were hit so strongly during the market crash of 2008, it is especially important to invest in a program that can turn a profit in the most tumultuous economic conditions. The crash served to showcase the managed future programs with the most solid principles and best strategies. Many investors lost significant values from their portfolios while the best managed futures programs still generated positive returns during this recession period.
2. Positive Annual Returns of 14% or greater Obviously the end goal when investing in a managed futures fund is to increase the investorâ€™s investment. Only programs with above average returns were considered as top performing programs. The returns reflect the â€œnetâ€? values after account fees have been deducted from the program. 3. Best Return to Drawdown Ratios Although we were able to find programs with better returns, if they did so by accepting unnecessarily high levels of risk and volatility, those managed futures were disqualified. Programs with high levels of volatility in general cannot consistently generate such high returns and are thus poorer long term investments than programs with smaller returns. In our opinion, a program with a 15% return and 30% drawdowns is not better than a program with 13% return and only 2% drawdown. The investments that were the most consistent earners were considered. 4. Program Aged 2007 or Older There are many great new alternative investments and while past performance is not a guarantee of future profits, programs with a longer standing performance history with positive returns every year made more sense to include. We want these investments to be the highest performing, lowest risk, with the longest history of
achieving their targets. Safe, secure, long standing investments should have a long reputable performance history.
Reminder: There is a substantial risk of loss in futures trading. Past performance is no guarantee of future profits. You should fully evaluate all the potential risks and rewards before investing into any managed future program. The regulations of the commodity futures trading commission (CTFC) require that prospective customers of a CTA receive a disclosure document when they are solicited to enter into an agreement whereby the CTA will direct or guide the clientâ€™s commodity interest trading and that certain risk factors be highlighted.
To read about the top 5 managed futures programs of 2011, please go to http://www.emanagedfutures.com.
Published on Apr 13, 2011