Monday, 06 February 2012
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Payam Pedram Explains the advantages of Managed Futures
A Managed Futures account is an alternative investment strategy which depends on the trading of professional investment managers known as the Commodity Trading Advisor (CTA). The trader focuses on commodity futures and trading options. Managed Futures investments are also referred to as CTA programs or Managed Futures Accounts.
CTAs that offer this kind of asset class are required to be registered using the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC), what are regulators for that industry. The NFA and CFTC keep a close eye on every registered member and require members to launch updated disclosure documents regularly.
A Managed Futures account gives the capability to go both long and short, because they are highly flexible financial instruments, which permit for the possible ways to make money from rising and falling markets. Moreover, managed futures funds have without any correlation to traditional asset classes, enabling them to enhance returns in addition to lower overall volatility. “Recent rise in managed futures may be substantial. In 2002, it had been estimated that more than $45 billion was under management by managed futures trading advisors. By the end of 2007, that number had grown to more than $200 billion.”
With more recent volatility and uncertainty inside the financial markets, managed futures have gained a lot of interest. As traditional management of your capital strategies, specifically “buy-and-hold” demonstrated their inability to ensure long term gains, a far more active approach to investing has become more favorable. Unlike passive management, managed futures are an actively managed investment strategy where positions are closed and opened at a faster rate.
The futures marketplace is also a gateway to participate within the exciting and lucrative market of commodities. With so much interest being directed towards the metals space within the last year, investing a number of one’s portfolio in gold, silver, or copper allows for speculation on where the price are usually in the long run. Soft commodities for example wheat and cotton have hit the headlines recently also. With major news breaking within the last year and multiple stories of current and future shortages beingshown to people there, the soft commodities space may serve as a fantastic place to be committed to.
The benefits of Managed Futures in a balanced portfolio are:
1. Potential to lower overall portfolio risk
2. The capability to enhance overall portfolio returns
3. Diversifications among numerous asset classes
4. Opportunity to profit in many different economic environments
5. Capping losses by implementing different trading strategies and disciplines
To get a detailed analysis of one's portfolio and whether it is possible to benefit from Managed Futures please contact Payam Pedram. http://www.ascendantasset.com
About Payam Pedram
Payam Pedram is a founding member and CEO of Ascendant Asset Advisors, Inc. He was approved as a Principal of AAA on April 22, 2005. He registered with all the CFTC as a possible Associated Person plus a NFA Associate Member on June 6, 2005. Pedram can also be registered with the California Department of Corporations being an Investment Advisor Representative. He could be a Microsoft Certified System Engineer, along with a graduate of Pepperdine University having a degree in Management. He also has an MBA from Pepperdine University using a dual emphasis in Finance and Dispute Resolution.
Past performance isn't suggestive of future results. Trading in futures and options is speculative and never ideal for all investors. A trader can potentially lose more than the wind turbine. Before investing, you have to review the newest disclosure document of ascendant asset advisors, inc.
The chance of reduction in trading commodities could be substantial. You ought to therefore think about whether such trading is suitable to suit your needs considering your personal finances.
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