Managed Futures Industry

Professional money management involving the use of futures has developed over the last 25 years.  Today, assets under management are in excess of $130 billion.  Funds are invested for a wide array of investors from both the U.S. and overseas including individuals, trusts, corporate and public retirement plans, foundations, endowments, and banks.

Professional money managers known as commodity trading advisors (CTA's) manage client funds on a discretionary basis.  Managers may specialize in certain markets or offer diversified programs that invest across a wide range of markets.  Investment styles range from arbitrage to spreading to short or long-term trend investing.  Investment decision making may involve traditional fundamental analysis or may encompass more sophisticated computer models which provide a totally systematic decision process.  Most CTA's take both long and short positions and employ some degree of leverage.  Often they will offer varying degrees of  leverage depending upon the individual client's investment goals.

Management fees for professional management typically include a management fee and also an incentive fee on new profits.

Updated February 13, 2006