Author: Greg Taunt
As IASG Vice President, Greg Taunt helps clients navigate the futures industry and find the best managers for their risk tolerance and portfolio needs. He specializes in maximizing portfolio effectiveness to potentially reduce risk while increasing returns through the use of managed accounts in non-correlated vehicles.
| |As one of the world’s largest futures databases, we begin talking to traders often at the earliest stages of their evolution up to billions of dollars in assets. But not all beginnings are equal, as some achieve early success and others never find it at all. Part of our challenge is trying to determine which ones provide the best opportunities to our investors. One might think that this is a simple process. A few favorite search methodologies on our site include Sharpe ratio, returns, or minimum investment amount. Each of these can be a good way to filter but ultimately … Read more There is a Story behind Every Futures Program
| |Managers in the futures space are faced with a dilemma when they launch their programs. They need to choose a trade level. For an equity manager this is an easy process as they often trade 100% of the cash available and sometimes decide to use leverage. ALL futures contracts already have the leverage built in so the question for them is how much to de-lever. Take manager ABC. He trades his own account very aggressively and routinely has drawdowns of 20% but can make 60% in an average year. He recognizes that this might be uncomfortable for investors. He therefore … Read more Understanding Minimum Investment Sizes
| |Market sentiment is a broad term that encompasses the prevailing feeling that investors have about a market. Measuring this “feeling” can be accomplished in a variety of ways. CNNMoney has a Fear and Greed Index that displays this in a simple format showing when investors are most willing to take on risk or hunker down. Modern takes for this type of strategy will take keyword data from financial press articles, interviews, or Twitter trends to make investment decisions as well. Some of these firms use Artificial Intelligence (AI) to parse this in real time to place trades across all markets. … Read more Market Sentiment. I feel that you should pay attention.
| |Investors are always faced with choices. My experience tells me that these choices are often driven by simple quirks of human behavior. Two of these that seem to be big drivers seem to be recency bias and a desire for simplification. Both of these naturally make us poor investors. For example, in March of 2020 in the throes of the COVID-19 pandemic we spoke with a number of investors who were thinking of just taking their whole equity portfolio flat. Today as we approach another all-time high that clearly would have been a bad time to sell. That same period, … Read more Investment Portfolio Design for an Unpredictable World