“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.
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Copyright ©2014 Mark Shore. Contact the author for permission for republication at firstname.lastname@example.org 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.