Abstract

The World of finance is continually evolving to become increasingly efficient. This ever-changing environment leaves investors constantly searching for what they call an alpha investment. Their hope is that these alpha investments will withstand financial turbulence and perhaps even outperform the market. In more recent years, alternative investment strategies have begun to penetrate the market, creating new ways of investing. The focus of this analysis is on a specific type of alternative investment, managed futures. 

Managed futures increasing fees and high investment minimums quickly created an environment that was only available to high net worth investors. These high net worth clients were attaining high returns among other benefits, which left everyday investors wondering how they could acquire the same benefits. Managed futures were then altered to become more available to everyday investors, by re-formatting within the last decade. Today, managed future mutual funds are a viable option for the everyday investor. Through comparative analysis, research and an empirical study, multiple aspects of managed future mutual funds were evaluated to better realize the benefits and downfalls for an everyday individual being invested in this newly formatted strategy. It is believed that managed future mutual fund’s benefits outweigh their consequences and have become a trusted addition to an everyday investor’s balanced portfolio.