We continue to believe that buy and hold strategies are no longer effective in this market environment. Investors need to consider allocating to alternative investment strategies have the ability to provide them with absolute returns.
Chicago, IL (PRWEB) October 9, 2008
Balarie Capital Management recently announced that they have launched a free CTA database that tracks several hundred Commodity Trading Advisors. The CTA database allows individual and institutional investors (family offices, endowments, pensions) to view performance data on several hundred different Commodity Trading Advisors from all over the globe. Each CTA program contains 2 full pages of performance results, statistical data, and comparison analysis. In addition, database subscribers can search for specific managers based on specific criteria or combine managers to create their own custom portfolios.
"In light of the current market conditions, we feel that investors are searching for ways to diversify their current portfolios," said Emanuel Balarie, Managing Director of Balarie Capital Management. "Our database offers them access to an alternative asset class- managed futures- that can be a valuable tool in adding portfolio diversification, potentially reducing overall volatility and potentially achieving a higher performance than traditional investment portfolios."
With managed futures, investors can generate returns that are non-correlated with their traditional investments. The reason is that Commodity Trading Advisors use different strategies, trade different markets, and implement different trading time frames than traditional stock and bond investments. Because various mangers have different ways of generating returns, there will be managers that can profit and thrive during recessions and bear markets.
Some of the strategies that are currently represented in the database include the following:
- Trend Following: Trend following is a strategy that simply follows trends based on certain technical indicators, like moving averages and breakouts. CTAs that specialize in this strategy can profit from both rising markets (by being long futures contracts) and declining markets (by being short the futures contracts). Trend followers, however, often do not fare well during choppy or sidewise markets.
- Counter Trend: This strategy seeks to profit from trend reversals. If you look at charts, you will notice that no market moves continuously up or down. There are often pullbacks and reversals. This strategy seeks to profit from those types of moves.
- Arbitrage: There are a number of sub-strategies that fall under arbitrage. The most prevalent in the managed futures industry is statistical arbitrage. A simple example of this strategy is if one manager simultaneously purchased gold on one exchange (for a lower price) and sold it on another exchange (for a higher price). This strategy looks to profit from the price difference.
- Global Macro / Fundamental Focus: Commodity Trading Advisors that trade the markets from a fundamental approach often look at crop reports, weather patterns, and economic data to determine whether to enter a trade. These managers can be implementing any number of strategies- including be short the market
Emanuel Balarie added, "We continue to believe that buy and hold strategies are no longer effective in this market environment. Investors need to consider allocating to alternative investment strategies have the ability to provide them with absolute returns."
In addition to access to the free CTA database, Balarie Capital Management is offering investors a free educational brochure on managed futures. Investors who are interested in receiving additional information should contact BCM.
The risk of loss in trading futures and options contracts can be substantial. You should therefore, carefully consider whether such trading is suitable for you. Past performance is not necessarily indicative of future results.
About Balarie Capital Management: About Balarie Capital Management ("BCM"):
BCM specializes in assisting institutional and high-net worth investors who are interested in investing in managed futures. Our consultative approach, independent research and analysis, and access to over 400 Commodity Trading Advisors, allows us to create custom managed futures portfolios that are designed to meet your specific investment needs.
About Emanuel Balarie: Emanuel is Managing Director of Balarie Capital Management, the managed futures division of Archer Financial Services, Inc. Emanuel works with institutional and high net worth investors regarding their managed futures investments. After graduating from the U.C. Berkeley, Emanuel started his career working for the San Francisco branch office of Merrill Lynch. After working for several other firms, ranging from dealing with commodities, stocks, futures, and alternative investments, Emanuel decided to combine his expertise and industry experience with the financial integrity and resources of Archer Financial Services, Inc.
Throughout his career, Emanuel has been an advisor to clients and institutions on the commodity markets and managed futures. His research has been published in many parts of the world, and he often speaks at national and international investment conferences. Balarie has appeared numerous times on CNBC, and is frequently quoted in dozens of financial publications such as, The Wall Street Journal, Reuters, Marketwatch from Dow Jones, Barron's, MSN Money, and Bloomberg.
Mr. Balarie is also the author of the book, Commodities for Every Portfolio and Editor of CommodityNewsCenter.Com