Managed Futures & CTA Strategies
Access diversified, uncorrelated return streams through global futures markets, including commodities, currencies, interest rates, and equity indices.
Advanced Alpha Advisers focuses on sourcing and allocating to CTA managers, with a core emphasis on emerging managers offering differentiated strategies and institutional-quality infrastructure.
Designed for Varying Market Conditions
Trend & Direction
CTA strategies can capture price trends across markets, whether rising or falling.
Diverse Environments
Performance is not dependent on a single economic outcome and can adapt across cycles.
Volatility & Inflation
Periods of volatility, inflation, and macro dislocation often create opportunity across futures markets.
Focus on Emerging Managers
Advanced Alpha Advisers emphasizes emerging CTA managers, typically under $500 million in assets, where capacity, agility, and differentiated strategies can provide unique return streams.
Manager selection and portfolio construction are driven by risk discipline, diversification, and correlation analysis.
Benefits include:
- Full-time commitment to the markets and their trading programs
- A disciplined trading approach
- Risk management strategies that attempt to control losses and protect profits
- Trading and risk management strategies that endeavor to balance risk with reward
Access to Global Futures Markets
Emerging CTA managers provide access to a broad and evolving set of liquid global futures markets, often deploying more agile and specialized approaches than larger, capacity-constrained firms.
With the continued expansion of global futures exchanges, these managers can dynamically diversify portfolios across regions and asset classes, adapting quickly to shifting market conditions.
Investors gain exposure to more than 150 liquid futures markets worldwide—including equity indices, interest rates, currencies, metals, agricultural commodities, and energy—while benefiting from the innovation, flexibility, and differentiated return profiles often found in emerging managers.
Considerations for Investors
Tax Advantages of Futures Investments
- The taxation of commodities investments, i.e. trading futures, is much different than that of securities.
- Futures contracts are generally marked to market at year-end for tax purposes, regardless of whether positions are closed.
- Any gains and losses are treated 60% long term and 40% short term regardless of holding period.
- No Trade by Trade Accounting
- Losses may be carried back up to three years under certain circumstances
- Futures contracts are not subject to wash sale rule.Tax law is complex, and regulated futures and options contracts even more complex.
- Investors should consult their own tax advisor regarding the tax implications of any investment and their specific financial situation. Advanced Alpha Advisers does not provide tax or legal advice.