Thu, Mar 28, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Managed futures still offer non correlation with traditional asset classes

Wednesday, October 12, 2011

amb
John Sundt
By Beverly Chandler, Opalesque London:

US retail investors have developed an appetite for managed futures on the evidence provided by Altegris Advisors Altegris Managed Futures Strategy Fund. The fund has raised $1 bn in its first 12 months. John Sundt, President and CEO of Altegris Advisor and Co-Portfolio Manager of the Altegris Managed Futures Strategy Fund explains that investors want strategies that do well in periods of crisis, what he calls 'crisis alpha'.

The non-correlation argument has always been the strongest argument for managed futures but many investors will know that you can wait a long time for the strategy to out-perform more traditional investments. Sundt says: "Managed futures are a marathon not a sprint."

The Altegris fund is based on a platform with exposure to managed accounts which are securitized to form a mutual fund investment in the managed futures managers that would not be available to many retail investors, Winton Capital among them. While performance for the fund over its first 12 months is pretty much flat, Sundt points out that the last quarter shows traditional markets down 20% during the 'summer shock while their portfolio was up 4%. "If you had 12-15% of your portfolio in managed futures last quarter it would have made a huge difference" he says.

Diversification is unarguably key for investors and managed futures and global macro style funds appear to offer that. From October 2007 to F......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1