Payam Pedram Explains some great benefits of Managed Futures
CTAs that offer this type of asset class must be registered using the National Futures Association (NFA) as well as 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 provides the power to go both long and short, since they are highly flexible financial instruments, which permit for your potential to profit from rising and falling markets. Moreover, managed futures funds have virtually no correlation to traditional asset classes, enabling them to enhance returns in addition to lower overall volatility. “Recent rise in managed futures has been substantial. In 2002, it was estimated that more than $45 billion was under management by managed futures trading advisors. In the end of 2007, that number had grown to a lot 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 lasting gains, a 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 with a faster rate.
The futures marketplace is additionally a gateway to sign up inside the exciting and lucrative market of commodities. With so much interest being directed towards the metals space during the last year, investing a number of one’s portfolio in gold, silver, or copper permits speculation on in which the price will be in the long run. Soft commodities including wheat and cotton have hit the headlines lately also. With major news breaking during the last year and multiple stories of current and future shortages on the horizon, the soft commodities space can serve as a fantastic place to be committed to.
The advantages 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 a number of economic environments
5. Capping losses by implementing different trading strategies and disciplines
For any detailed analysis of one's portfolio and whether you are able 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 being a Principal of AAA on April 22, 2005. He registered with the CFTC as a possible Associated Person along with a NFA Associate Member on June 6, 2005. Pedram is also registered with the California Department of Corporations being an Investment Advisor Representative. He's a Microsoft Certified System Engineer, along with a graduate of Pepperdine University using a degree in Management. He also comes with an MBA from Pepperdine University having a dual emphasis in Finance and Dispute Resolution.
Past performance isn't indicative of future results. Trading in futures and options is speculative rather than ideal for all investors. A trader can potentially lose more compared to wind turbine. Before investing, you have to review the most recent disclosure document of ascendant asset advisors, inc.
The risk of loss in trading commodities can be substantial. You ought to therefore carefully consider whether such trading is suitable for you personally considering your finances.
