managed futures

Managed futures refers to an investment strategy where a professional money manager, registered as a Commodity Trading Advisor (CTA), actively manages a portfolio of futures contracts, options on futures, and sometimes forward contracts. These portfolios are typically diversified across global markets, including commodities (energy, metals, agriculture), currencies, stock indices, and interest rates. The core objective is to generate returns that are not correlated with traditional stock and bond markets, providing diversification benefits to an investor's overall portfolio. CTAs employ systematic, trend-following strategies, going long in markets with upward momentum and short in markets with downward momentum, aiming to profit in both rising and falling market conditions. The strategy is regulated in the U.S. by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA).