Managed Futures or Gold?

We assess the suitability of managed futures and gold as potential diversifiers for equity portfolios. We look at the historical performance of both investments.

Managed Futures in Declining Equity Markets

In this review of recent performance: We demonstrate that managed futures has historically performed much better in major equity market declines than in minor equity market corrections.

Managed Futures: Alternative Risk Premia?

Within hedge funds, investors often differentiate between alternative beta, alternative risk premia and alpha strategies. While there is some overlap between managed futures and alternative risk premia strategies, there are also fundamental differences.

What’s Driving Precious Metals in 2019?

Commodity markets have generally been difficult for managed futures in 2019, precious metals have been something of a bright spot.

Video: What’s Driving Markets?

February 2020 – What is driving markets in February 2020 including the coronavirus.

Video: What’s driving markets – March 2020?

3-minute video: background to the drivers and moves in markets in March 2020.

What’s different about Managed Futures

The low correlation between managed futures and both equities and bonds stems from the different drivers of returns for managed futures relative to equities and bonds. Some of the differences are:

Article – The four market phases of the corona-crisis and the potential long-term implications for markets – April 2020

Markets have experienced extreme volatility in recent weeks.

The four market phases of the corona-crisis – April 2020

2 Min Video: Alan Dunne, examines how the coronavirus has impacted markets in four distinct phases.

Recent performance of gold and managed futures

Concerns about the debasement of fiat money, following extraordinary monetary stimulus from global central banks, have raised investor interest in gold as a portfolio diversifier. The metal has historically been regarded as a safe haven asset, with the potential to produce diversification for equities.

The Shape of the Recovery – June 2020

2-Min Video: Alan Dunne, discusses the shape of the economic recovery and whether markets have disconnected from the economy.

Inflation or Deflation debate – July 2020

Whether inflation or deflation represents a bigger risk for markets.