Key Takeaways
- • eManaged Futures, a self-described managed futures and high yield investment specialist, released a study on March 22, 2011 ranking thousands of managed futures programs on five factors and naming six top programs.
- • The five ranking criteria were years with positive returns, program age, average annual returns, drawdown ratios, and risk management.
- • The firm claims popular programs owe their prominence to marketing and broker payouts rather than track record, a claim the press release does not support with published data.
- • The release positions managed futures as outperforming stocks, bonds, and mutual funds on average annual returns and drawdowns, citing academic work by Dr. John Lintner.
- • The study is framed explicitly toward retail investors seeking retirement savings, not institutional allocators.
Summary
eManaged Futures, which describes itself as a leading expert in managed futures and high yield investments, announced on March 22, 2011 the completion of a study that examined the vast majority of high yield investment programs in managed futures and ranked them worldwide. According to the press release, thousands of platforms were scored on five factors: number of years with positive returns, program age, average annual returns, drawdown ratios, and risk management. The release names six programs as the best, though the names are not reproduced in the text provided.
The study concluded that several popular investments owed their success more to marketing image than to their performance record. eManaged Futures spokesperson Frankie Fihn said that some programs are widely distributed because they offer more favorable payouts to introducing brokers, creating an incentive to promote them over potentially better-value alternatives. Fihn stated that commissions and marketing image were excluded from the scoring, which was based only on factors he said matter most to investors assessing value. The firm described the selections as the best managed futures for the retail investor.
The release frames the study against the backdrop of the recent economic recession, which it says has increased pressure on individuals to save for retirement earlier. It asserts that managed futures have a long history of outperforming stocks, bonds and mutual funds, with higher average annual returns and the lowest industry drawdowns. The release quotes John Summa of Investopedia on diversification benefits, citing academic research on combining traditional assets with managed futures, and references Dr. John Lintner of Harvard University as the most-cited researcher in this area.
The press release does not disclose the study's methodology weights, data sources, time period, or the identities of the ranked programs, and the performance claims are presented by the issuer rather than independently verified. Readers should treat the rankings as promotional material from a single firm. Further details are available at the company's website, emanagedfutures.com.
The study concluded that several popular investments owed their success more to marketing image than to their performance record. eManaged Futures spokesperson Frankie Fihn said that some programs are widely distributed because they offer more favorable payouts to introducing brokers, creating an incentive to promote them over potentially better-value alternatives. Fihn stated that commissions and marketing image were excluded from the scoring, which was based only on factors he said matter most to investors assessing value. The firm described the selections as the best managed futures for the retail investor.
The release frames the study against the backdrop of the recent economic recession, which it says has increased pressure on individuals to save for retirement earlier. It asserts that managed futures have a long history of outperforming stocks, bonds and mutual funds, with higher average annual returns and the lowest industry drawdowns. The release quotes John Summa of Investopedia on diversification benefits, citing academic research on combining traditional assets with managed futures, and references Dr. John Lintner of Harvard University as the most-cited researcher in this area.
The press release does not disclose the study's methodology weights, data sources, time period, or the identities of the ranked programs, and the performance claims are presented by the issuer rather than independently verified. Readers should treat the rankings as promotional material from a single firm. Further details are available at the company's website, emanagedfutures.com.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.