Discuss how managed futures differ from other alternative investments?

Expert Solution

Managed futures are consisting of various kinds of future contracts which are managed by professionals and they will be often inversely correlated with the movement of the stocks.

Managed portfolio are often used by portfolio managers and other institutional investors in order to to provide a diversification benefit to their portfolio and they are not taking position in the hedge fund because these managed portfolio are providing with lower fees and higher diversification. The proper type of following with managed portfolio are trend following strategies and neutral strategy.

Managed futures are different from other type of alternative investment opportunities because they are offering with the high diversification benefit and they are providing with proper hedging strategy through investment into a fund so these are also having lower fees and elimination of risk to a large extent so it can be providing with the proper hedging with investment into a fund which are not available with other investment instruments. These are also issued in units.

jeff jeffy answered 1 year ago

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