Andrew Beer argues managed futures can modernize the 60/40 mix by hedging volatility and providing crisis alpha. DBMF tracks this strategy and has gained roughly 19% year-to-date, signaling growing demand for alternatives. Still, bonds aren't obsolete, and portfolios should consider how these strategies interact with traditional fixed income.
Managed futures strategies, like DBMF, are gaining popularity as they perform well in market downturns. With large inflows this year and interest from major asset managers, DBMF is well-positioned to capitalize on rising investor demand in uncertain markets.
Eckhardt Trading launches mutual fund blending managed-futures and fixed-income strategies. Managed-futures strategies aim for diversification and perform well in volatile markets. Eckhardt's approach has historical gains during market turmoil periods like 2022. Managed futures costs higher than conventional funds, with substantial minimum investments. DBMF and similar ETFs also benefit from trend-following managed-futures strategies.
DBMF lost 3.1% on Friday and 3% Monday, facing market volatility. Yen rallied, stocks tumbled, and bonds surged impacting DBMF's performance. Trend-following funds saw year-to-date gains trimmed to 5% from 12%. CTAs reduced equity positioning to the 45th to 50th percentile recently.