The Benefits of Managed Futures,
by Thomas Schneeweis,
Professor of Finance, University of Massachusetts.

This academic study challenges the myth that managed futures as investments are riskier than stocks. According to Schneeweis “Managed futures are not any more riskier than traditional equity investments. Investment in a single commodity trading advisor is shown to have risks and returns, which are similar to investment in a single equity. Moreover, a portfolio of commodity trading advisors is also shown to have risks, and returns, which are similar to traditional investments.”

Facts and Fantasies About Managed Futures,
by Gary Horton, The Wharton School, University of Pennsylvania, and
K. Geert Rouwenhorst, Yale School of Management

This study was published in 2004, a year which experienced the biggest jump in new money entering managed futures from the previous year since 1980, according to the Barclay Group. The conclusions of this study serve to lend further credence in support of the conclusions drawn in the aforementioned studies.

Adding to these academic studies is an article appearing in the September 9, 2004 edition of The Wall Street Journal entitled “Commodities Enter Investment Mainstream” that underscores the conclusions drawn in the aforementioned studies and served also to capture the attention of investors: During the past 45 years, the article noted, “commodity futures have had roughly the same return as stocks with less risk, have way outperformed bonds and are a better hedge against inflation than either stocks or bonds.”

Please be advised that managed futures investments involve a substantial risk of loss and are not suitable for all investors.