Chapter 13 Commodity trading advisors and their role in managed futures

DEREK. EDMONDS

13.1 INTRODUCTION

The primary purpose of this chapter is to examine the merits of using managed futures as a diversifying vehicle for traditional investments, to analyse the variables that are considered in the evaluation, selection and monitoring processes of building a portfolio of traders, and ultimately to probe into the characteristics of the traders that comprise a multi-advisor portfolio.

Section 13.2 discusses the major advantages for investing in this asset class, including powerful arguments for diversification, ability to potentially profit from all types of market conditions, access to global markets and limited liability. In order to achieve ...

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