Alternative investments: managed futures

Abstract

In the present article the managed future as an alternative investment has been presented. Author made an attempt to present the genesis of this innovative section of financial transactions. The investment management professionals have been using the managed futures for more than 30 years. More recently, institutional investors such as corporate and public pension funds, endowments and trusts, and banks have made the managed futures as the part of a well-diversified portfolio. The managed futures enable to reduce the portfolio volatility risk, enhance portfolio returns and participate in a wide variety of new financial products and markets not available in traditional investor products. At the same time it was important to mention about limitations of practicing investments in managed futures.