Dighton Capital USA manages money for qualified investors who seek to diversify their portfolios through the addition of alternative investment vehicles, namely commodity futures. Dighton, in its role as a Commodity Trading Advisor (CTA), manages its approach to trading futures by  employing a variety of proprietary methodologies intended to maximize profit while, at the same time, minimizing risk. Please be advised that futures and options trading involves substantial risk of loss and is not suitable for all investors.

Managed futures have been documented as investment vehicles offering relatively low levels of correlation when compared with the performance of equity and fixed income investments. In fact, one of the most uncorrelated of investments is managed futures programs under the direction of professional money managers, aka CTAs.

The value of professionally managed futures within the context of a well-balanced investment portfolio was thoroughly researched by Dr. John Lintner, of Harvard University, in his 1983 landmark study, “The Potential Role of Managed Futures Accounts in Portfolios of Stocks and Bonds.” According to Lintner, “…the combined portfolios of stocks (or stocks and bonds) after including judicious investments...in leveraged managed futures accounts show substantially less risk at every possible level of expected return than portfolios of stocks (or stocks and bonds) alone.” Lintner’s work demonstrated how managed futures can potentially decrease portfolio risk while, simultaneously, enhancing overall portfolio performance. However, there is no guarantee that an investor will receive the same or similar returns trading managed futures as shown below.

The foregoing studies strongly support Dr. Lintner’s conclusions:

The Impact of Portfolio Diversification

As you can clearly see in Graph#1, portfolios with as much as 20% in managed futures may potentially yield up to 50% more than stock and bond portfolios, while having comparable risk.

Source: Chart derived from statistics presented in the Chicago Merchantile Exchange's Q&A Reports on Managed Futures. 1993 edition page 4

Potential Impact of Managed Futures on the Traditional Portfolio January 1980 - Dec 2004
Annualized Standard Deviation Graph #2, exhibited in the 2006 edition of “Portfolio Diversification Opportunities,” published by the Chicago Board of Trade, shows that a portfolio without managed futures underperforms and is more risky than a portfolio that includes managed futures. The portfolio that exhibited the highest returns and least volatility, comprised 37.5% stocks,37.5% bonds, and 25% managed futures.
Source: Barclay Trading Group, Ltd., Managed Futures: CTA Index; Lehman Brothers Long –Term Treasury Index; Stocks; S&P 500 Total Return Index