Managed future strategies are gaining renewed attention as investors look for new sources of returns from the market at a time when both stocks and bonds are under pressure as a result of the U.S.-Iran war and the risk of 1970s-style stagflation.
These strategies, which are typically run by commodity trading advisors, use systematic models to trade future contracts across different asset classes. ...
The narrative around managed futures strategies presents a compelling case for their role in diversification, particularly in volatile markets. The strongest version of this argument highlights their historical outperformance during market stress, adaptability to geopolitical and economic uncertainty, and the democratization of access through ETFs. The entry of major asset managers like BlackRock and Fidelity lends credibility, suggesting institutional validation of the strategy.
However, the pa...