Managed futures

There are many who now believe that the 1990s will be the decade of the financial derivative - in the same way that the 1980s were the decade of equity. The arena in which institutional investors operate has grown dramatically - they now trade in foreign exchange, global equities, Eurobonds, bonds, and, of course, derivatives. Futures, options, forward-rate agreements, currency forwards, swaps and other sophisticated vehicles are used to redefine a portfolio at a minute's notice and to limit its exposure to risk and downside market movements. Managed futures funds, represent an attempt to bring order out of chaos in investment in the derivatives markets. The managed futures investor is using futures, options and other instruments in an effort to achieve above-average returns through the application of an active management or trading system. For institutional investors who are considering the managed-futures markets, in order to increase their exposure to derivatives in their institutional portfolios, but have little practical knowledge of the market, Managed Futures: An Investor's Guide provides a detailed overview of its history and jargon, plus a complete breakdown of regulatory and tax issues. Written from a European perspective, this is the first book to offer this type of information. Beyond this, the author provides a comprehensive guide to the managed-futures industry for professional investors whose companies are interested in launching a managed-futures fund aimed at the retail or institutional investor.