How do managed futures contribute to modern diversification?
Managed futures are investment strategies that trade futures contracts across global markets, including equities, fixed income, currencies, and commodities. These strategies are typically run by professional managers using systematic, rules-based approaches, often referred to as trend-following or momentum-based models. Unlike traditional long-only investments, managed futures can take both long and short positions, allowing them to potentially profit in rising or falling markets.The defining characteristic of managed futures is their ability to respond dynamically to price trends rather than relying on economic forecasts or company fundamentals. This flexibility makes them structurally different from stocks and bonds, which are often tied to…