Why Managed-Futures Funds Are Here to Stay, Says DBi’s Andrew Beer

Managed futures strategies have regained investor attention in early 2026 as macroeconomic turbulence validates the diversification thesis underlying trend-following funds. Andrew Beer, managing member of DBi, discussed the resurgence of managed futures in a Morningstar interview, pointing to early-year market dislocation as evidence of the strategy's enduring value. The iMGP DBi Managed Futures Strategy ETF (DBMF), which Beer oversees, posted a 5% gain through January 27, 2026, compared to a 1.4% return for the Morningstar US Market Index, demonstrating outperformance during a period characterized by heightened geopolitical and macroeconomic uncertainty.

The strategy's mechanics rest on identifying nascent trends across futures markets. DBMF invests across futures contracts in 10 major markets, capturing gains as investors gradually process new information. This quarter alone, market conditions have been marked by significant volatility: Trump administration threats regarding tariffs and territorial acquisition sent gold prices near $5,000 per troy ounce, weakened the US dollar, and triggered a surge in Japanese government bond yields as fiscal stimulus concerns mounted. These conditions exemplify the environments in which trend-following approaches historically generate alpha, as broad cross-market dislocations create directional opportunities that systematic strategies can exploit.

Performance data illustrates both the cyclical nature of managed futures and the importance of manager skill. DBMF returned 13.8% in 2025 versus the US Market Index's 17.4% gain, reflecting equity market strength that typically pressures diversifying strategies. However, the fund significantly exceeded the average systematic trend fund's 3.7% return for the same period, underscoring performance differentiation within the managed futures category. Year-to-date 2026 performance reversal demonstrates the strategy's asymmetric payoff profile—delivering outsized returns when traditional correlations break down.

Morningstar analysts Lan Anh Tran and Ryan Jackson provided analytical support for the category's institutional relevance, noting that "managed futures have a long track record of diversifying risk in traditional portfolios" and that "their diversification benefit justifies their place in a portfolio during market downturns." This characterization positions managed futures as a structural hedge rather than a tactical trade, supporting Beer's broader argument that the strategy merits permanent allocation within diversified institutional portfolios. The confluence of geopolitical risk, currency volatility, and debt sustainability concerns in early 2026 appears likely to sustain institutional interest in trend-following approaches as a complement to traditional equity and fixed-income holdings.