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Managed Home
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Benefits
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Strategic Portfolio
Analysis •
Managed Futures
Modern
Portfolio Theory
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Investors want the highest returns with
the least risk
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Diversification is essential to managing
risk
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Higher returns are possible with better
asset allocation
Asset Allocation with Managed Futures*
Source: “The Potential Role of Managed
Commodity Financial
Futures Accounts (and/or Funds) in
Portfolios of Stocks and Bonds,” Annual
Conference of Financial Analysts Federation,
May 1983.
*Dr. John Lintner of Harvard University,
wrote that "the combined portfolios of
stocks (or stocks and bonds) after including
judicious investments ... in leveraged
managed futures accounts show substantially
less risk at every possible level of
expected return than portfolios of stocks
(or stocks and bonds) alone."
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Benefits
What are the benefits?
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Possible ability to enhance return on
investment
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Performance is not necessarily dependent
on economic conditions
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Helps diversify existing portfolio
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Opportunity for better risk management
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Broad diversification within the
investment
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No daily management
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Liquidity
Managed futures can be a valuable part of an
overall asset allocation plan; its purpose
is to add portfolio diversification,
potentially reduce overall portfolio
volatility and potentially achieve higher
overall portfolio performance over time when
compared to traditional investment
portfolios alone.
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Strategic Portfolio Analysis
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What strategies are available to
investors to help them manage the high
degree of volatility and risk that exist
in today’s investment climate?
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How can investors increase the
diversification in their portfolios
beyond stocks and bonds?
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What is the role of non-correlated
assets in managing portfolios?
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What can investors do to try and achieve
better risk reward ratios in their
portfolio?
One of the most influential tenets of
Modern Portfolio Theory suggest that
non-correlated assets play a significant
role in helping manage risk and optimize
performance. Diversification between
different asset classes can help
increase diversification and potentially
provide better risk management.
Bumgarner Ag Services is committed
to helping investors achieve more
diversification in their portfolios by
providing analysis and research on
strategic investment portfolios. Managed
futures can provide global
diversification in a single asset.
Bumgarner Ag Services helps investors
and institutions that want to diversify
beyond traditional investments to
achieve more efficient portfolios.
Strategic portfolio analysis includes
asset allocation, balancing, and
optimization strategies.
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Managed Futures & Asset Allocation
What are Managed Futures?
Managed futures are an alternative asset
class that allows investors to
simultaneously participate in multiple
global market sectors such as
currencies, energies, metals, short and
long term interest rates, domestics and
international stock indices and
traditional commodities.
Sample Portfolio
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