Striker - Managed Futures Overview

Tuesday, September 07, 2010
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Managed Futures

Managed Futures

Overview

The term "Managed Futures" describes an industry made up of professional money managers known as commodity trading advisors ("CTA"). A CTA, in return for management and incentive fees, manage client assets seeking capital appreciation, using global futures markets as an investment medium. These professional managers are (1.) required to be registered with a U.S government agency, the Commodity Futures Trading Commission ("CFTC"), (2.) qualify to become members of the National Futures Association ("NFA"), and (3.) provide a current disclosure document for each prospective investor.

The Benefits of Managed futures within a well-balanced portfolio are:

The opportunity for reduced portfolio volatility risk. One of the primary benefits of adding a non-correlated managed futures component to a diversified investment portfolio is that it may decrease overall portfolio risk.
The potential for enhanced portfolio returns. While managed futures can decrease overall portfolio risk, they can also simultaneously enhance overall portfolio performance.
The ability to profit in any economic environment. Managed futures trading advisors trade both up-trending as well as down-trending markets.
Global diversification. Diversified trading advisors have over 150 different worldwide markets to use in their programs.

BaclayHedge estimates that money under management during the 1st quarter 2010 was $217.2 billion, a 1.7% decrease from the previous quarter and 10.4% increase in assets over the past 12 months.

Because of Striker's experience with 3rd party system developers and our "no-conflict" structure, we are uniquely suited to offer emerging professional CTA services to customers. Investors seeking higher returns will often place funds with these up-and-coming advisors, recognizing the potential advantage of ground-floor entry. Please view our current list of CTA's that have been screened by Striker to add to your portfolio.

Striker Securities is located in the Chicago Board of Trade Building, the home of the "futures capital" of the world. With direct access to the world's markets and an independent no-conflict structure, Striker offers maximum flexibility, transparency and superior service to investors seeking to invest in managed futures.

Overview

CTA Ranking

Featured CTA

Striker Securities, Inc.
Chicago Board of Trade Bldg.
141 W. Jackson Blvd.
Suite 3602
Chicago, Illinois 60604
800-669-8838 (Toll-Free)
312-987-0043 (International)
312-987-9088 (Fax)
Contact by Email »

Disclaimer The risk of trading can be substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Striker is a member of the Financial Industry Regulatory Authority ("FINRA"), the Securities Investor Protection Corporation ("SIPC"), the National Futures Association ("NFA"), the Managed Funds Association ("MFA"), and the National Introducing Broker Association ("NIBA"). FINRA is the largest non-governmental regulator for all securities business in the United States. Please read Striker Disclosure Statement for the additional disclosure. Striker is registered with the Securities Exchange Commission ("SEC"), and the Commodity Futures Trading Commission ("CFTC").

Futures Trading Disclaimer:
Transactions in securities futures, commodity and index futures and options on futures carry a high degree of risk. The amount of initial margin is small relative to the value of the futures contract, meaning that transactions are heavily "leveraged". A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit: this may work against you as well as for you. You may sustain a total loss of initial margin funds and any additional funds deposited with the clearing firm to maintain your position. If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss and you will be liable for any resulting deficit.

Securities Trading Disclaimer:
Unlike futures, which are regulated exclusively by the Commodity Futures Trading Commission ("CFTC"), securities are regulated by both the Securities & Exchange Commission ("SEC") as well as the investor's home State. Although Striker Securities, Inc. is a registered securities broker-dealer with SEC, it is not registered to conduct securities business in all 50 states. For further information contact us at 312-987-0043 or info0808@striker.com.

Forex Trading Disclosure:
Trading cash Foreign Exchange ("FX") contracts carries the same high level of risk as futures trading (Futures Trading Disclaimer). However cash FX, unlike futures FX contracts that are regulated by the Commodity Trading Futures Commission, are not regulated by any governmental agency. In addition, because there is not a central clearing house for cash FX transactions, there is also a counterparty risk for each contact. For additional information please read the National Futures Association ("NFA") August 2003 "Investor Alert" found on the Striker Disclaimer Page.