Managed Futures vs. Other Investments

The key distinctions between managed futures and other alternative investment strategies are accessibility, transparency, liquidity, and variety.


The high minimum capital requirements for hedge funds, private equity funds, and venture capital investments are reserved for institutions and very high net worth individuals. The lower account minimums of managed futures make them more accessible and practical for the average investor to add to their portfolios.


As regulated entities, portfolio managers report their performance monthly, track records, and business processes are regularly audited. In addition, portfolio managers place trades directly into individual accounts, meaning you have full access to monitor trades, view open positions and account values daily.


Portfolio managers trade the most liquid, centrally-cleared and exchange-traded global commodity and financial futures markets. Also, unlike other alternative strategies, there are no lockout periods with a managed futures account, you may rescind trading authority and withdraw funds from your account at any time.


As a result of the breadth of trading styles and strategies employed, you can select a portfolio manager or mix of portfolio managers that optimize returns given your individual risk tolerance and to best compliment your portfolio.