The week is off to an very busy start on a personal front, all good stuff though. A very short one tonight with an idea that I was curious to look at. We've talked about the dispersion between different managed futures funds and whether or not to consider more than one fund for even small allocations.
The following looks at nine different managed futures funds, equally weighted then 10% to TECL which is the equivalent of 3X technology plus the same nine managed futures fund and of course VBAIX is plain vanilla 60/40.
The long term result, ten years is a decent timeframe, of Portfolio 2 is pretty good as are the stats and the year by year but it seems sensitive to fast declines due to two things, I believe. There were a few times were managed futures got whipsawed by bonds and of course if the S&P 500 gets a bug bite, TECL will get flesh eating disease (trying to make a joke).
Not that anyone would allocate 90% across nine different managed futures funds in real life but that many funds blends away the various spasms that these funds have from time to time.
The information, analysis and opinions expressed herein reflect our judgment and opinions as of the date of writing and are subject to change at any time without notice. They are not intended to constitute legal, tax, securities or investment advice or a recommended course of action in any given situation.
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