I was recently interviewed for a few articles and we discussed the topic of overlaying strategies as a potential component of a managed futures portfolio. Realizing this topic is not discussed as much as it should be; it opens the door to a more in-depth understanding of managed futures. It is a topic I cover in my managed futures course at DePaul University.

Discussing the topic of overlaying strategies really gets to the heart of one question that keeps reappearing, "why are CTAs non-correlated to equities?" This is a very simple question to ask and is asked with high frequency. But the answer includes many topics to properly answer it. One may say it's the "special sauce" in understanding managed futures. One of the topics of the special sauce is the utilization of overlaying strategies.

For example, let's assume the following of a fictional CTA (Commodity Trading Advisor):

- The CTA trades a diversified systematic trend following model (Core model) in 20 markets in both financial and commodity futures.

- The model can be long, short or READ MORE

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Copyright ©2014 Mark Shore. Contact Mark Shore for permission for republication at info@shorecapmgmt.com Mark Shore has more than 25 years of experience in the futures markets and managed futures, publishes research, consults on alternative investments and conducts educational workshops. www.shorecapmgmt.com 

Mark Shore is also an Adjunct Professor at DePaul University’s Kellstadt Graduate School of Business, where he teaches the only known accredited managed futures course in the country. He is also a Board Member of the Arditti Center for Risk Management at DePaul University.

Past performance is not necessarily indicative of future results.  There is risk of loss when investing in futures and options.  Futures and options can be a volatile and risky investment; only use appropriate risk capital; this investment is not for everyone. The opinions expressed are solely those of the author and are only for educational purposes. Please talk to your financial advisor before making any investment decisions.

Skewing Your Diversification with Mark Shore and special guest Megan Morgan February 23, 2014. Topics include: VSTOXX Futures, volatility, hedging, Euro STOXX 50, volatility newsletter, Eurex Exchange and much, much more

Skewing Your Diversification is a weekly internet show hosted by Mark Shore on www.btfd.tv

The show covers many topics of alternatives with a special focus on managed futures, hedge funds, commodities, currencies and futures. Stay tuned for more episodes and lots of great guests!

For a full list of episodes click here

Follow Mark Shore on Twitter, Facebook and Linkedin

Copyright ©2014 Mark Shore. Contact Mark Shore for permission for republication at info@shorecapmgmt.com Mark Shore has more than 25 years of experience in the futures markets and managed futures, publishes research, consults on alternative investments and conducts educational workshops. www.shorecapmgmt.com 

Mark Shore is also an Adjunct Professor at DePaul University’s Kellstadt Graduate School of Business, where he teaches the only known accredited managed futures course in the country. He is also a Board Member of the Arditti Center for Risk Management at DePaul University.

Past performance is not necessarily indicative of future results.  There is risk of loss when investing in futures and options.  Futures and options can be a volatile and risky investment; only use appropriate risk capital; this investment is not for everyone. The opinions expressed are solely those of the author and are only for educational purposes. Please talk to your financial advisor before making any investment decisions.

DePaul University's The Arditti Center for Risk Management Presents:

The Arditti Seminar Series February Session:

Risk Management and Policy Decision Making
Addressing the Big Things: The value of effective failure study

Good decision-making starts with the necessity of identifying the “big things” that really matter, and dealing with our over-reliance on instinct and pervasive use of the “induction fallacy.”

Although our natural bias favors the study of success, this process is insufficient and unsatisfactory, because the human default to instinctive decision-making reflects errors of bias and misperception – errors that can instead be reduced or avoided through “failure study.”

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Articles Receiving the Most Eyeballs on the Shore Capital Management LLC Website January 2014




January 2014

1) Skewing Your Diversification with Mark Shore Ep 3 with Guest Leigh Faber

2) Skewing Your Diversification with Mark Shore Ep2 with Guest David Stendahl

3) Skewing Your Diversification (The Show)

4) Most read articles December 2013

5) Skewing Your Diversification with Mark Shore Ep4 with Guest Don Steinbrugge

6) Skewing Your Diversification with Mark Shore Ep1

7) 5 Components of Hedge Fund Due Diligence

8) Michael Covel Interviews Mark Shore on TrendFollowing Podcast About Managed Futures

9) Overlaying Strategies in Managed Futures: Does it Help an Investor?

10) Decoding the Myths of Managed Futures

For more information email info@shorecapmgmt.com

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Skewing Your Diversification with Mark Shore and special guest Brian Haskin February 9, 2014. Topics include: Hedge funds, managed futures, alternative investments, liquid alternatives, 40 act funds, liquid alts.

Skewing Your Diversification is a weekly internet show hosted by Mark Shore on www.btfd.tv

The show covers many topics of alternatives with a special focus on managed futures, hedge funds, commodities, currencies and futures. Stay tuned for more episodes and lots of great guests!

For a full list of episodes click here

Follow Mark Shore on Twitter, Facebook and Linkedin

Copyright ©2014 Mark Shore. Contact Mark Shore for permission for republication at info@shorecapmgmt.com Mark Shore has more than 25 years of experience in the futures markets and managed futures, publishes research, consults on alternative investments and conducts educational workshops. www.shorecapmgmt.com 

Mark Shore is also an Adjunct Professor at DePaul University’s Kellstadt Graduate School of Business, where he teaches the only known accredited managed futures course in the country. He is also a Board Member of the Arditti Center for Risk Management at DePaul University.

Past performance is not necessarily indicative of future results.  There is risk of loss when investing in futures and options.  Futures and options can be a volatile and risky investment; only use appropriate risk capital; this investment is not for everyone. The opinions expressed are solely those of the author and are only for educational purposes. Please talk to your financial advisor before making any investment decisions.

DePaul University’s Arditti Center for Risk Management Presents:

Future of Risk Management: Challenges and Opportunities

The Department of Finance at DePaul University in Chicago has established The Arditti Center for Risk Management to honor the lifetime achievements of Fred Arditti. The center commemorates his outstanding contributions to the theory and practice of risk management by coordinating activities that celebrate his life’s work.

The Arditti Center's mission is to promote excellence in the Education, Research and Practice of risk management.

Panelists Include:
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Copyright ©2014 Mark Shore. Contact Mark Shore at info@shorecapmgmt.com Mark Shore has more than 25 years of experience in the futures markets and managed futures, publishes research, consults on alternative investments and conducts educational workshops. www.shorecapmgmt.com

Mark Shore, Adjunct Professor of managed futures at DePaul University’s Kellstadt Graduate School of Business in Chicago and 25 year veteran of the futures industry notes increased interest in managed futures for the last several years.

“Assets under management in managed futures have increased over 700% since 2000 according to BarclayHedge.”

To help explain the managed futures message, Shore announced DePaul University will once again offer a graduate level managed futures course in the spring of 2014.

Demand continues to increase for education of alternative investments, Shore notes, “The market volatility over the last decade has investors increasingly questioning the core principles behind a diversified investment portfolio”. He said. “What’s needed is a greater understanding of dynamic correlation, tail risk and what volatility really means.”

This course is designed from a practitioner’s perspective to give students exposure to the managed futures industry within alternative investments by discussing tools and concepts utilized in the industry. Although the focus is on managed futures, the topics may be applied to other investments.

As noted in Shore's paper "Decoding the Myths of Managed Futures" there is a growing demand by the investment industry for practitioners who understand this product as the need to reduce correlation risk and tail risk increases.

The course will introduce various metrics used for evaluating trading models and evaluating investment managers known as Commodity Trading Advisors (CTA). 

The course will discuss some trading strategies utilized and current topics/ macro economics as they relate to the lessons of the course.

The students will learn to express their positive or negative views of fund managers and trading models to senior management, an investment committee or investors, thus utilizing the tools of asset allocation and due diligence.

Follow Mark Shore on Twitter, Facebook and Linkedin


Copyright ©2014 Mark Shore. Contact the author for permission for republication at info@shorecapmgmt.com Mark Shore has more than 25 years of experience in the futures markets and managed futures, publishes research, consults on alternative investments and conducts educational workshops.

Mark Shore is also an Adjunct Professor at DePaul University's Kellstadt Graduate School of Business in Chicago and a board member of DePaul University’s Arditti Center for Risk Management. Mark is a contributing writer to Reuters HedgeWorld, the CBOE Futures Exchange, Micro-Cap Review, Yahoo.com and Examiner.com

Past performance is not necessarily indicative of future results.  There is risk of loss when investing in futures and options.  Always review a complete CTA disclosure document before investing in any Managed Futures program.  Managed futures can be a volatile and risky investment; only use appropriate risk capital; this investment is not for everyone.  The opinions expressed are solely those of the author and are only for educational purposes. Please talk to your financial advisor before making any investment decisions.