Excess Returns Why Most Investors Won't Buy the Best Diversifier | Andrew Beer on Managed Futures
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Dec 5, 2024 Andrew Beer, managing over a billion dollars at Dynamic Beta Investments, dives into managed futures and their potential for portfolio diversification. He discusses the misconceptions surrounding these strategies and the challenge of getting investors on board despite their benefits. The conversation highlights the importance of clear communication, simplicity over complexity, and adapting to market conditions. Andrew also touches on the evolving ETF landscape and the role of AI in investment management, offering insights valuable to both professionals and individual investors.
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Explain Managed Futures Benefits
- Focus on what managed futures does for a portfolio rather than its mechanics.
- Explain its benefits in bear markets and its ability to limit drawdowns.
Narrative over Numbers
- Investors choose investments based on narrative and feeling, not just performance.
- Managed futures lacks a compelling narrative, hindering its adoption despite its statistical benefits.
Dad's Managed Futures
- Jack Forehand tried explaining managed futures to his dad, focusing on its protective qualities.
- He believes the term "managed futures" itself might be a barrier to understanding.
