We have four key principles that shape our approach to investment.
A multi‑manager approach
There is a large dispersion of returns in managed futures as CTAs use different strategies, signals, timeframes and risk allocation methods when trading markets and managing capital.
Combining different managers – and combining allocations to trend-following strategies with allocations to other trading strategies such as short-term, value or global macro – can diversify a portfolio.
Investing in managed futures is not suitable for all investors given the level of risk involved, including the risk of loss. Diversification does not assure a profit, nor does it protect against a loss.
Trading with the trend
While macroeconomic factors driving markets shift over time, we believe the behavioural biases that impact humans when trading markets do not change. This results in price patterns and trends which are often repeated across markets.
We believe that systematic strategies can be constructed with the aim of identifying and profitably exploiting these price patterns and trends.
Investing for the long‑term
We believe that successful investing in managed futures requires the ability to identify managers with repeatable and scalable trading strategies. It also requires an ability to stick with managers through periods of difficult performance rather than reacting to short-term trends in performance.
We aim to construct robust portfolios which can perform through the cycle rather than optimising portfolios based on past performance.
Investing in managed futures is not suitable for all investors given the level of risk involved, including the risk of loss.
Prioritising risk management
We invest a significant amount of resources into risk management – and have built a culture of managing risk at every level of our business.
Managed accounts are central to our risk management and portfolio management process. They provide full transparency on positions and enable detailed manager analysis. We have allocated to managers using managed accounts throughout our track record.