In Defense of Managed Futures Indices – Part Two
By Attain Capital
Our weekly newsletter is out, continuing our look at managed futures indices. A couple of weeks ago, we began a long overdue defense of managed futures indices. Financial indices are useful, albeit imperfect, tools for understanding asset class performance, but managed futures indices are criticized far more frequently than traditional indices are, and we’d had enough of the poorly-founded saber rattling.
However, the defense wound up much longer than we’d anticipated, and rather than bombard you one enormous piece, we decided to split the defense into two parts. Christmas last week delayed the send of the second part, and New Year’s yesterday would have delayed it further, but we have too much planned for the coming weeks to delay any further. So, without any further ado, the continued defense of managed futures indices.
Newedge = Newedge CTA Index; DJCS = Dow Jones Credit Suisse Managed Futures Index; Barclay = BarclayHedge CTA Index; S&P TR = S&P 500 Total Return Index
Disclaimer: past performance is not necessarily indicative of future results.
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To read more Managed Futures research pieces, visit Attain’s Managed Futures Newsletter archive and our Managed Futures Blog.
DISCLAIMER
Forex trading, commodity trading, managed futures, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors.
The entries on this blog are intended to further subscribers understanding, education, and – at times- enjoyment of the world of alternative investments through managed futures, trading systems, and managed forex. Unless distinctly noted otherwise, the data and graphs included herein are intended to be mere examples and exhibits of the topic discussed, are for educational and illustrative purposes only, and do not represent trading in actual accounts.
The mention of asset class performance is based on the noted source index (i.e. Newedge CTA Index, S&P 500 Index, etc.) , and investors should take care to understand that any index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices: such as survivorship and self reporting biases, and instant history.
Managed Futures Disclaimer:
Past Performance is Not Necessarily Indicative of Future Results. The regulations of the CFTC require that prospective clients of a managed futures program (CTA) receive a disclosure document when they are solicited to enter into an agreement whereby the CTA will direct or guide the client’s commodity interest trading and that certain risk factors be highlighted. The disclosure document contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA.
Copyright © 2011 Attain Capital Management, licensed Managed Futures, Trading System & Commodity Brokers. All Rights Reserved. Reprinted with permission.
