Managed Futures

Rosenthal Collins Group offers a variety of managed futures services to investors, traders and introducing brokers.

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Managed Futures Services and RCG’s CTA Database

Rosenthal Collins Group, through its managed futures team, RCG Managed Futures, offers a variety of managed futures services to investors and introducing brokers. We offer access to a wide set of Commodity Trading Advisors (CTAs) to help investors gain exposure to products that are not necessarily correlated to the stock market, such as agricultural products, metals, stock indexes (where you can short the market) and others.  The Managed Futures team highlights more than 30 different CTAs and offers access to a full database of over  200 CTAs.  The investor can choose from a large variety of trading styles that include discretionary trading, technical trading, trend following, counter-trend, day trading, spreads and option strategies.  In the last 30 years, assets invested in managed futures have increased by a factor of 1,000, skyrocketing from just $310 million in 1980 to over $330 billion in 2013. Investors can use RCG’s free CTA database to help choose CTAs by accessing RCG’s Managed Futures Website.

A Professional Trader Trades the Account

Why is there so much interest in managed futures? It allows you to diversify your portfolio while someone else handles the trading for you. A managed futures account can provide the investor exposure to the futures markets without necessarily needing the skills to be a successful trader. The CTAs are professional traders who, through part of their fees (called an incentive fee), make their money when the investor makes money in the market; therefore, just like you, the CTA has an incentive to have the account positively perform.  In addition, the CTA also can make money on a management fee which is not tied to performance.

Diversify beyond the traditional asset classes of stocks/bonds/cash

One of the biggest advantages of managed futures is their potential independence from other markets such as equities, bonds and cash. Some of the CTAs that we highlight and offer have a low correlation to one of the most common benchmarks, the S&P 500, with some CTAs having less than 0.1 correlation. We also offer other CTAs that have been negatively correlated to the stock market. Since there is a possibility of little or no correlation to the S&P 500, the returns of the managed futures allocation in the portfolio will not necessarily follow the returns of the stock market allocation of the portfolio. Studies have shown that a small allocation (10-20%) to managed futures compared to a portfolio normally split evenly between fixed income and stocks can offer the chance not only for better returns, but also possibly lower volatility.

Please visit our Managed Futures Website for more details about some of the services available through Rosenthal Collins Group.