golden-point-capital-benefits-managed-futures

Investment Diversification:

Managed futures in general can play an important role in an investor’s diversified portfolio.  Generally, managed futures have displayed a low correlation with the overall market.  They can serve to enhance an investor’s overall diversification. Managed futures accounts can provide an opportunity to reduce overall portfolio volatility while enhancing overall returns.


Managed futures also serve to provide an investor with access to a broad array of asset classes within the futures space including the following: stock indices, energy, metals, hard and soft commodities, currencies, and fixed income futures markets.  Managed futures accounts provide a way for traditional investors to access these markets, which they may otherwise not have access to in assembling a fully diversified portfolio.


A diversified managed futures program's potential for profit or loss does not directly correlate to movements in traditional investments such as stocks and bonds.  Absolute return strategies enable managers to produce returns regardless of market direction, employing a broader range of investment instruments.


Professional Trading Management:

There are numerous markets that the average investor does not have access to.  These markets have many intricacies and complexities that an average investor may not have the knowledge or time to handle appropriately.  Golden Point Capital Management’s Principal has years of experience and expertise trading the often overlooked and underutilized futures markets.


Additionally, many investors make poor decisions trading their own account because of human emotions such as fear, greed, impatience or impulsiveness.  Golden Point Capital Management employs a 100% mechanical and systematic approach intended to prevent these potentially detrimental behaviors.


The total system mechanization that Golden Point Capital Management utilizes forces the strategy to adopt the following qualities: discipline, patience, objectivity, control over emotions, and rational decision-making during all market conditions.


Interest Income:

Most of the major exchanges and futures clearing merchants accept margin collateral in the form of interest-bearing instruments, such as United States Treasury bills. Approximately 90% of assets will be invested in these interest-bearing obligations. As such, managed accounts will earn interest on collateral pledged for trading, as well as excess cash deposits.


Associated Risks:

There is a risk of loss in trading futures. Trading futures is not suitable for all persons. The use of managed futures in a portfolio does not mean that an investor will be profitable or will not experience any losses or volatility. The results of studies conducted in the past may not be indicative of current time periods or of the performance of any individual CTA. There are limitations associated with managed futures indices. It is not possible to invest in a CTA index. Certain CTA indexes only report the performance of those CTAs who submit performance; the actual rate of return may be significantly different and more volatile than those of the index.