Benefits of Managed Futures Opportunities in Both Bull & Bear Markets
Disclosure Statement    Download Page

CFTC Risk Disclosure Statement

THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL.  YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.  THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU.  THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS.

 

In some cases, managed commodity accounts are subject to substantial charges for management and advisory fees. It may be necessary for those accounts that are subject to these charges to make substantial trading profits to avoid depletion or exhaustion of their assets. The disclosure document contains a complete description of the principal risk factors and each fee to be charged to your account by the commodity trading advisor ("CTA").

 

The regulations of the commodity futures trading commission ("CFTC") require that prospective customers of a CTA receive a disclosure document when they are solicited to enter into an agreement whereby the CTA will direct or guide the client's commodity interest trading and that certain risk factors be highlighted. This document is readily accessible at this site. This brief statement cannot disclose all of the risks and other significant aspects of the commodity markets. Therefore, you should proceed directly to the disclosure document and study it carefully to determine whether such trading is appropriate for you in light of your financial condition. You are encouraged to access the disclosure document by clicking the links provided AT Forms.altavra.com. You will not incur any additional charges by accessing the disclosure document. You may also request delivery of a hard copy of the disclosure document at formsbymail.altavra.com, which will also be provided to you at no additional cost. The CFTC has not passed upon the merits of participating in any of these trading programs nor on the adequacy or accuracy of any of these disclosure documents.

 

Other disclosure statements are required to be provided before an account may be opened for you.

 

Portfolio Diversification:  Opportunities in Bull and Bear Markets

Managed futures can take advantage of price trends no matter which direction the markets move, and thus can generate positive returns even in a volatile economic environment that can cause stress to a typical stock and bond portfolio. With the combined potential for decreased portfolio risk and enhanced portfolio performance, managed futures are not only an attractive stand alone investment but in recent years are now becoming a very attractive addition to global asset management portfolios. They also hold the unique potential of improving the overall investment quality of that portfolio.  This potential has been further substantiated by the landmark study of Dr. John Lintner of Harvard University, in which he noted that “the combined portfolios of stocks (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.”   Value of an Initial $10,000 Portfolio with a 10% Allocation to Managed Futures vs. a Traditional Stock and Bond Portfolio:   Source Data: Managed Futures: CISDM Managed Futures Index; U.S. Stocks: S&P 500 Index; U.S. Bonds: Lehman Brothers Aggregate Bond Index January 1980 - March 2004.   Investing in managed futures is speculative, involves a high degree of risk, and is not suitable for all investors.  Past performance is not necessarily indicative of future results.