But Osborne thinks managed futures can be a useful diversifier for portfolios, and says that the environment in which they tend to do well is coming into clearer view. During short periods of recent market stress, such as the end of 2018, the funds as a group held up much better than the stock market.
“We’re finally moving to a place where global central banks are having less impact on the market,” he says. “This opens up more opportunity for trending markets to make a comeback. We believe that there is real potential for managed futures investors to once again see the benefits of active portfolio diversification.”