Altegris Advisors launches actively managed futures fund

Altegris Advisors LLC is looking to tap into the growing demand for managed- futures investing with its own actively managed fund, Altegris Managed Futures Strategy Fund Ticker:(MFTAX).
SEP 07, 2010
Altegris Advisors LLC is looking to tap into the growing demand for managed- futures investing with its own actively managed fund, Altegris Managed Futures Strategy Fund Ticker:(MFTAX). The mutual fund, which launched this week, invests in the “best of breed” commodity trading advisers making up the Altegris 40 Index, which tracks the 40 largest CTAs in the world. Altegris is the latest in a growing list of fund companies to bring this particular alternative-investment strategy to retail-class investors. The trend is being fueled by an increased appetite for non-correlated returns and risk management — areas in which many trend-following managed-futures managers have shown incredible strength since the financial crisis began in 2008. For example, when the S&P 500 index fell that year by more than 38% the average private-managed-futures fund gained more than 18%. Over the 10-year period ended Aug. 31, the Altegris 40 Index generated a cumulative return of 122%, compared with a 17% decline over the same period by the S&P 500. “Managed futures have a sustained historical track record throughout a number of major market scenarios,” said Jon Sundt, president and chief executive of Altegris, which manages more than $2 billion in assets. Until recently, managed futures had been available only through private placements that come with high investment minimums and net-worth requirements. The Rydex/SGI Managed Futures Strategy Fund Ticker:(RYMFX) was one of the first mutual funds to offer retail investors access to managed futures, using an indexed strategy. That fund, launched in March 2007, helped boost the appeal of managed futures when it gained more than 8% in 2008, while the S&P 500 fell by more than 38%.

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