We find that some investors are quite concerned about volatility in the Stock and Bond markets and are looking to “hedge” their positions with advanced strategies to protect their investment portfolios against significant market fluctuations.

One of the advanced methods we can use for sophisticated investors is a Managed Futures Portfolio using several Professional Investment Managers that put together portfolios using specialized techniques to manage market volatility. These are considered to be “Alternative Investments” that are often used for diversification of an Investment Portfolio.

The Managed Futures Portfolio typically uses long or short positions in futures contracts (“derivatives”) in the U.S and Foreign Stock and Bond Markets. These portfolios may also invest a portion of their assets directly in Fixed Income Investments to generate returns and interest income and also to use as collateral in developing Managed Futures positions.

Our Managed Futures Portfolio managers use these derivative contracts instead of owning investments directly and trade them in the Futures Markets as opposed to the traditional Stock and Bond Markets. They may also trade in Commodities, Energy, Agricultural Markets as described in their portfolio strategy disclosures. Our Managed Futures Portfolio pulls together several of these managers to achieve a broadly based exposure to this investment strategy.

The performance of the Managed Futures Portfolio should show a low correlation to the Stock and Bond Markets and can be quite useful to diversify an investment portfolio. This positions them as effective hedge on investments but is a less expensive and more efficient approach than the rather expensive and opaque “Hedge Fund” used in the past. New regulations have made these portfolios more acceptable to sophisticated investors as a substitute for the traditional Hedge Fund.

These investments seek to achieve Capital Appreciation in both rising and falling (Bull and Bear) equity markets with a level of volatility that is generally lower than the historic level of volatility experienced by Global Stock Markets.


The Managed Futures Portfolio is considered as an Alternative Investment intended for use by sophisticated investors with substantial assets to invest to diversify their investment portfolio. All investing is subject to risk, including loss of principal, and past performance is no guarantee of future results.

You can learn more about our full service Investment Management and Financial Advisory practice at our website www.SWRetire.com  and see more investing ideas that may be useful to you.

Views, opinions and analyses expressed in this presentation are those of Southwestern Retirement and not those of Independent Financial Group, LLC.

Registered Representative offering Securities and Advisory Services through Independent Financial Group LLC,

a Registered Broker-Dealer and Investment Adviser. Member FINRA/SIPC.

 Southwestern Retirement Planning Advisors, Inc. is not affiliated with Independent Financial Group LLC.

OSJ Address: 4041 MacArthur Blvd., Suite 240, Newport Beach, CA 92660