Key Takeaways
- • Standpoint Asset Management's Multi-Asset Fund delivered a 76.98% total return from December 2019 through August 31, 2024, substantially outperforming a peer group of 20 largest alternative mutual funds (average 28.44%) and beating competitors including AQR Capital Management, BlackRock, Goldman Sachs, and JPMorgan.
- • The Standpoint fund achieved an annualized return of 13.00% versus the peer group average of 5.39%, while maintaining a Sharpe ratio of 0.92 compared to the group average of 0.39%, demonstrating superior risk-adjusted returns.
- • Maximum drawdown for the Standpoint fund was 9.84%, which exceeded seven other funds in the peer group but remained below the average worst decline of 13.46%, suggesting effective downside management despite higher volatility.
- • Managed futures face a reputation challenge following poor post-2008 performance, with the Barclay CTA index showing negative results in four of five years after the financial crisis, coinciding with a wave of lower-cost 40 Act product launches that captured disappointed investor interest.
- • Eric Crittenden's fund structure emphasizes managed futures' core mandate: delivering portfolio diversification and stable returns throughout full market cycles, addressing longstanding investor skepticism about the asset class.
Summary
Managed futures carry a persistent image problem rooted in timing and performance disappointment. The asset class gained prominence after delivering exceptional results during the 2008 financial crisis, prompting fund companies to capitalize on renewed interest by launching lower-cost 40 Act mutual fund products. However, this expansion proved ill-timed. According to the Barclay CTA index, managed futures strategies posted negative performance in four of the five years following the crisis, eroding investor confidence just as capital was beginning to flow into these products.
Eric Crittenden, founder of Standpoint Asset Management in Scottsdale, Arizona, witnessed this cycle firsthand at his previous position. Rather than abandon the asset class, he structured his firm's Standpoint Multi-Asset Fund to refocus managed futures on their intended purpose: providing portfolio diversification and consistent returns across full market cycles. The strategy appears to have gained traction. From its late December 2019 inception through August 31, 2024, the fund's institutional share class delivered a 76.98% total return, substantially outpacing a peer group of 20 major alternative mutual funds with an average return of 28.44%. This cohort includes products from leading institutions such as AQR Capital Management, BlackRock, Goldman Sachs, and JPMorgan.
Risk-adjusted metrics further distinguish the Standpoint fund's performance. Its annualized return of 13.00% compared favorably to the peer group average of 5.39%, while its Sharpe ratio of 0.92 nearly doubled the group average of 0.39%, suggesting superior efficiency in generating returns per unit of risk. Drawdown management also merits attention: the fund's maximum asset decline of 9.84% exceeded seven competitors in the peer set but remained meaningfully better than the group's average maximum decline of 13.46%, indicating an ability to cushion downturns relative to typical alternatives peers.
The question of whether managed futures truly serve as optimal diversifiers remains contested within institutional circles. Standpoint's performance record suggests that proper fund structuring and disciplined execution can unlock the asset class's historical strengths during periods when equity-heavy and traditional 60-40 portfolios face stress. Whether this recent track record proves durable or represents an extended favorable market regime for trend-following strategies will likely influence institutional allocation decisions over the next investment cycle.
Eric Crittenden, founder of Standpoint Asset Management in Scottsdale, Arizona, witnessed this cycle firsthand at his previous position. Rather than abandon the asset class, he structured his firm's Standpoint Multi-Asset Fund to refocus managed futures on their intended purpose: providing portfolio diversification and consistent returns across full market cycles. The strategy appears to have gained traction. From its late December 2019 inception through August 31, 2024, the fund's institutional share class delivered a 76.98% total return, substantially outpacing a peer group of 20 major alternative mutual funds with an average return of 28.44%. This cohort includes products from leading institutions such as AQR Capital Management, BlackRock, Goldman Sachs, and JPMorgan.
Risk-adjusted metrics further distinguish the Standpoint fund's performance. Its annualized return of 13.00% compared favorably to the peer group average of 5.39%, while its Sharpe ratio of 0.92 nearly doubled the group average of 0.39%, suggesting superior efficiency in generating returns per unit of risk. Drawdown management also merits attention: the fund's maximum asset decline of 9.84% exceeded seven competitors in the peer set but remained meaningfully better than the group's average maximum decline of 13.46%, indicating an ability to cushion downturns relative to typical alternatives peers.
The question of whether managed futures truly serve as optimal diversifiers remains contested within institutional circles. Standpoint's performance record suggests that proper fund structuring and disciplined execution can unlock the asset class's historical strengths during periods when equity-heavy and traditional 60-40 portfolios face stress. Whether this recent track record proves durable or represents an extended favorable market regime for trend-following strategies will likely influence institutional allocation decisions over the next investment cycle.
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