Managed futures are weirdly uncorrelated
Should 60/20/20 using liquid alts go mainstream?
Managed futures have compelling diversification properties, but most people haven’t heard of them.
Historically, this is because they’re 1) weird, 2) tax-inefficient.
“Weird” cuts two ways: a) they’re largely uncorrelated with stocks/bonds (a good thing), but… b) they don’t have the intuition of stock beta or bond duration (a learning curve thing).
Does the weird compensate for the learning curve and tax inefficiency? I’m starting to think so…
