Although commodity trading advisors have had a banner year, investors don’t have a big enough allocation to get the protection they need, according to Universa Investments’ Ron Lagnado.Lagnado, the tail-risk hedging firm’s research director, recently analyzed several CTA indexes dating back to the 1980s, measuring performance, risk, and volatility. He found that for investments in managed futures funds to meaningfully add to performance, asset owners would have to allocate at least 10 percent of...
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