Payam Pedram Explains the advantages of Managed Futures
CTAs that provide this kind of asset class must be registered with all the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC), what are regulators for the industry. The NFA and CFTC have a close eye on every registered member and need the members to file updated disclosure documents regularly.
A Managed Futures account provides the capability to go both long and short, as they are highly flexible financial instruments, that allow for the possibility to make money from rising and falling markets. Moreover, managed futures funds have almost no correlation to traditional asset classes, enabling these phones 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. Towards the end of 2007, that number had grown to greater than $200 billion.”
With additional recent volatility and uncertainty inside the real estate markets, managed futures have gained lots 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 way of investing is now better. Unlike passive management, managed futures are an actively managed investment strategy where positions are closed and opened at a considerably faster rate.
The futures market is also a gateway to participate in inside the exciting and lucrative market of commodities. With so much interest being directed for the metals space during the last year, investing some of one’s portfolio in gold, silver, or copper permits speculation on in which the price are usually in the near future. Soft commodities for example wheat and cotton have hit the headlines recently as well. With major news breaking in the last year and multiple stories of current and future shortages beingshown to people there, the soft commodities space can serve as a fantastic place to be committed to.
The benefits of Managed Futures inside a balanced portfolio are:
1. Potential to lessen overall portfolio risk
2. The power 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 your portfolio and whether you can take advantage of Managed Futures please contact Payam Pedram. http://www.ascendantasset.com
About Payam Pedram
Payam Pedram is really 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 all the CFTC as an Associated Person and a NFA Associate Member on June 6, 2005. Pedram is also registered with all the California Department of Corporations as a possible Investment Advisor Representative. He is a Microsoft Certified System Engineer, and 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 an indication of future results. Trading in futures and options is speculative rather than suited to all investors. An angel investor could very well shed more pounds compared to the wind turbine. Before investing, one must assess the latest disclosure document of ascendant asset advisors, inc.
The risk of decrease in trading commodities may be substantial. You ought to therefore carefully consider whether such trading works for you personally in light of your finances.
