What does Managed Futures mean?
The term managed futures is used to refer futures managed by professionals for their clients. These professionals are portfolio managers and known as Commodity Trading Advisors (CTAs).
Futures Knowledge Explains Managed Futures
CTAs generally manage their clients' assets by using different strategies including going long or short in futures contracts in commodities, equity indexes, government bond futures and foreign currency. Managed futures provide portfolio diversification among Alternative Investments besides traditional investment styles. Managed futures help mitigate portfolio risk and generally provide higher average return on long term basis.