Global Macro and managed futures performance off lows

Investors have be abuzz with talk about the good performance for managed futures so far this year, but this performance should be placed in perspective. First, the best month over the last twelve for managed futures and global macro was generally last January. Second, most of the global macro and managed futures indices are below their high water marks for last twelve months. It is not too late to invest. Third, global macro discretionary have done better than managed futures on a risk adjusted basis. However, managed futures has done better than many other hedge fund styles which have been disappointing investors with their flat to negative performance of the last year.

The key allocation decision for alternative investments this year may be focusing on style differences that focus away from equity trading.