Return to Managed Futures Home Iowa Capital Management, Inc.

Professionally Managed Futures Investments

202 South Second, Fairfield, Iowa 52556     641 469-5188     800 844-5188     fax: 641 472-2074
About ICM  FAQ  Articles/Links   Contact

Managed Futures

The wisdom of diversification has long been espoused by money managers and financial planners alike. Investors today, particularly in a volatile environment for stocks, have become highly receptive to investments that are non-correlated to

stocks and that can increase the performance and reduce the risk in their overall investment portfolios. An investor's need for diversification is underscored by the frequent 50 to 100 point daily swings in the Dow that at times can make many managed futures programs look calm by comparison.

Stocks and commodities are both useful asset classes, each having its own merit. However, as numerous studies point out, stocks and commodities work better when combined together in an overall portfolio. One such study points out a stock and bond portfolio diversified with only 20% in managed futures can increase overall performance by as much as 50% -- with comparable risk!

If an investor is in the financial position to diversify, we strongly believe success in Professionally Managed Futures Investments will be greatly enhanced with a portfolio of several Commodity Trading Advisors (CTAs).

The Ideal Way to Invest In Professionally Managed Futures Investments

Of course, if an investor is not in the financial position to diversify, it is our opinion that at least one CTA should be selected who best meets the client's affordability, risk parameters, investment temperament, and goals.


By investing with CTAs who possess variable trading styles and systems, it is possible to reduce the volatility in the entire portfolio. For example, hypothetically speaking, one could have a portfolio of four CTAs with equal funds being traded. One CTA could be down 5%, the second down 20%, the third up 20%, and the fourth up 45%. In this example, even though half of the CTAs are losing, the investor is still in a net positive position.

The Concept of Managed Futures Portfolios

Of course the reverse could be true. The key is to find CTAs whose performance records show a net overall better performance than in periods when they performed poorly.* Our goal is to have a given CTA eventually recover from all drawdown periods, ultimately to achieve new highs in equity.

For more information call us at 1-800-844-5188 or 641 469-5188.
Review some excellent articles about   Managed Futures  and review our   sampling of Trader Programs

* Reference: Chicago Mercantile Exchange (CME), brochure # M584/50M/1193, "A Question and Answer Report on Managed Futures Accounts."



RETURN TO HOME PAGE



Past Performance is not necessarily indicative of future results.
The risk of loss exists in futures trading.

© 2009 Iowa Capital Management, Inc. All rights reserved.