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Managed Futures are investments
made in the futures and foreign exchange markets by professional
traders on behalf of their clients. Professional traders are usually
registered Commodity Trading Advisors (CTAs) like Tactical.
Investors are attracted to
managed futures primarily because they offer potentially excellent,
uncorrelated diversification to the traditional assets, stocks
and bonds. Diversification may reduce overall portfolio risk and
is the appeal of managed futures. Lots of people consider managed
futures a true alternative asset class.
An investment in managed futures
is made through either a managed account or a futures fund. A
managed account is appropriate for an institution or very high
net worth individual who can afford to open a very large individual
account. A futures fund, in which an investor pools his or her
money into a large account like a limited partnership is an option
for all investors.
Professional institutional
investors in managed futures usually invest with several CTAs
to get diversification across different trading strategies. Multi-advisor
futures funds are designed to provide a similar potential benefit
for everyone.
As opposed to traditional
assets, there is no inherent return in the futures markets. Returns
are made solely on the basis of the skill of the trader. It is
therefore customary for CTAs to charge skill-based incentive
fees in addition to customary management fees for their services.
Investing with Tactical is designed
for sophisticated investors who are able to bear a substantial
or entire loss of their investment. Before seeking this advisor's
services read and examine thoroughly the Disclosure Document.
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