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Managed Futures Basics

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.