Articles

eManaged Futures education

Making the right investment choice is all about having the right knowledge and skillset. Take a look at our managed futures articles and see what value we bring to the table for our investments.

Commodity Index
A Commodity Index is a weighted average of selected commodity prices.  The purpose of a commodity index is to represent an asset class’ price fluctuations as a whole, or a subset of the asset class.

Futures and Options
Futures are an Alternative Investment which is comprised of a standard contract between two parties to exchange an asset, but with delivery on a future specified date.  These products are traded on a Futures Exchange. Options are an Alternative Investment which provides the option to purchase/sell a specified product at a reference price.  The owner of the option has the right, but not the obligation to purchase/sell.

Dow Jones Futures
Dow Jones Futures are based on the  Dow Jones Industrial Average, founded by Charles Dow on May 26, 1896.  This average is a dollar average of stocks from leading American Industries.  It began with 12 stocks and now is comprised of 30 Blue Chip, publicly owned companies within the United States.

Alternative Investments
Alternative Investments is a term that is commonly used, however is quite broad.  The following provides what products are included within ‘Alternative Investments’, what Alternative Investments are not, and who can invest in Alternative Investments.

Futures Margin
CTA’s who provide Managed Futures products monitor the necessary costs associated with holding contracts which provide the returns that are generated from their investing methodology.  These costs are set by the Commodity Futures Trading Commission, the regulatory body who governs the Futures Industry, providing Futures Margin requirements.

USA Futures

Futures in the USA have a long history of providing value to the American economy.  The following information provides an education of Exchanges, Clearing Firms, USA Futures Regulators, and Brokers.

Managed Futures vs. Mutual Funds
Managed Futures and Mutual funds have many similarities and differences. The below information compares the areas of Buying and Selling, Management, Fees, Approach, Documentation, Regulators and Risk.

Managed Futures and 401k Tax Shelters
A Self Directed 401(k) is a is a US Government regulated Tax Deferral account from which you can invest in a Managed Futures products and defer taxation on capital gains.  This is another way to allow the profit gained by investing in managed futures to compound.  Using up Self Directed IRA room to compound gained equity and avoid paying out tax meets the investor’s goals of growing total funds…

Reducing Portfolio Volatility
Reducing Volatility within a Portfolio has always been at the top of the investor’s priority list.  It’s the same priority as ‘less risk for more reward’, and is therefore a main goal of the investment community.  The below pieces of information will outline how we believe Managed Futures can help with our goal to meet this goal within your portfolio…

Managed Futures Relationships, Industry and Profit
When evaluating what asset class to allocate to within your portfolio, looking at asset class statistics is one of the first logical places to begin.  Performance of asset classes compared against each other pictorially shows the value of holding asset classes alongside each other.  With the asset class relationships clear, allocation decisions are that much less complicated…

Are you considering managed futures?
For those of you who are just considering investing in futures or commodities and have heard about a way that is ‘similar’ to buying a Mutual Fund, Managed Futures is the name of the game. So what are managed futures? Managed Futures are investment products that use a professional money manager who decides on when and what is bought or sold for a profit or loss (I know I for one don’t forget what the markets did in 2008!) in exchange for a percentage of the returns…