Managed futures are a type of alternative investment employed by professional investment managers known as Commodity Trading Advisors (CTAs). Most CTAs use computer-based trading systems and a quantitative trend-following strategy that signals when to take long or short positions as various trends are identified. This gives the CTA an opportunity to take advantage of both positive and negative developments across multiple markets and asset classes. Other CTAs utilize non-trend following strategies.
CTAs typically trade in transparent markets that provide daily liquidity. Managed futures strategies seek to provide investors with the following key advantages:
- Ability to invest across a wide range of global markets (200+) covering currencies, energies, interest rates, metals, equity indices and agricultural commodities.
- The flexibility to take long or short positions to capture both positive and negative market trends.
Steben specializes in providing managed futures strategies through actively managed, multi-advisor funds. Over the long-term, managed futures strategies have provided investors strong historical returns with a low correlation to broad equity and fixed income markets.