Chesapeake Investment Services utilizes ACE Investment Strategists as its premier CTA for managed accounts. As analyzed by Dr. John Litner of Harvard University in his landmark study "The Potential Role of Managed Futures Accounts in a Portfolio of Stocks and Bonds", managed futures have the potential to create "added value and a reduced risk profile to our clients portfolios".
ACE is an experienced money manager specializing in developing and implementing alternative investment strategies. ACE's mission is to provide positive investment returns, compared with the major stock indices, by creating strategies which are designed and implemented to potentially succeed in all market environments, whether trending or consolidating. These strategies aim to complement traditional portfolios as a growth component.
For more information on ACE please visit www.investwithace.com
Please be advised that trading futures and options involves substantial risk of loss and is not suitable for all investors. Many of ACE's programs focus on writing (selling) options. Be aware that selling options involves unlimited risk of loss. An investor must read and understand the current disclosure document before investing. There are no guarantees of profit no matter who is managing your money.
ACE Spotlight
ACE has three managed futures strategies that utilize the unique hybrid trading approach. The Stock Index Hybrid Approach ("SIHA") has been trading since November 2007 and ACE recently launched the Multi Market Hybrid Approach ("MMHA") in January of 2011 and the Energy Sector Hybrid Approach April of 2011. Read more about these strategies here
What are managed futures?
Managed futures are a highly flexible
alternative investment traded on many financial and commodity markets around
the world. By broadly diversifying across markets, managed futures may
simultaneously profit from price changes in stock indices, treasury futures or
bond futures, and currencies, as well as from diverse commodity markets having
virtually no correlation to traditional asset classes such as the stock market.
Modern Portfolio Theory first developed by Harry
Markowitz of the University of Chicago in 1952 dictates that a diversified
portfolio of uncorrelated assets can provide maximum return for minimal
volatility. Managed futures offer investors one of the most uncorrelated and
independent investments relative to most other traditional asset classes.
Tax Benefits
According to the Tax Act of 1981, short-term profits in commodities are treated as 60% long term and 40% short term...(read more) |
Why has there been
such substantial growth in managed futures?
Managed futures are one of the fastest growing investments today.
- In 1980 there was less than $1 billion in managed futures.
- In 2000 there was $37.90 billion.
- However, as of the 3rd quarter of 2008 there was $228 billion in managed futures!
- Managed futures experienced an increase in assets 600% higher than that experienced in the prior twenty year period.
According to the CME Group, “Managed futures have been used successfully by investment management professionals for more than 30 years. Institutional investors looking to maximize portfolio exposure continue to increase their use of managed futures as an integral component of a well diversified portfolio. With the ability to go both long and short, managed futures are highly flexible financial instruments with the potential to profit from rising and falling markets. Moreover, managed future funds have virtually no correlation to traditional asset classes, enabling them to enhance returns as well as lower overall volatility. Recent growth in managed futures has been substantial. In 2002, it was estimated that more than $45 billion was under management by managed futures trading advisors. By the end of 2007, that number had grown to more than $200 billion.”
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. There are no guarantees of profit no matter who is managing your money.
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