Altegris in a new report titled Is The Trend Your Friend? on managed futures, disccuses whether or not it is time to invest in managed futures. More details below:
Changing Trends Challenging For Market
The past few years have been challenging for managed futures. Due to the dearth of trends, amplified volatility compression, whipsawing between risk-on and risk-off market environments and low interest rates, it has seemed at times like “the perfect storm”.
The LF Brook Absolute Return Fund lost -2.52% in the second quarter of 2021, compared to a positive performance of 7.59% for its benchmark, the MSCI Daily TR Net World Index. Year-to-date the fund has returned 4.6% compared to 11.9% for its benchmark. Q2 2021 hedge fund letters, conferences and more According to a copy Read More
But perhaps the perceived crisis in managed futures is not actually a crisis at all, but a time of unique opportunity.
Altegris would suggest that now might be an opportune time to invest in managed futures due to the following:
- The prospect of strengthening trends and heightened volatility
- A more consistent perceived risk environment
- Potential for rising rates
- Historically, managed futures have performed strongly following large drawdowns—just like the recent period of underperformance
Managed futures managers have been generating positive returns this year-to-date from very diverse positioning in the markets.
Attached is a white paper, which provides a detailed analysis and perspective by Matt Osborne, Executive Vice President and Managing Director of Altegris Advisors and a Director of Altegris Funds.
ALTWPTrendYourFriendFINAL052813v3 (3) by ValueWalk.com