Managed Futures
Managed futures is the strategy category: client capital traded in a diversified futures universe, usually systematic trend, sometimes with carry, reversion, or macro overlays.
Definition
The portfolio is a set of futures (and forwards) with a risk budget, not a stock list. Leverage is in the contracts; cash sits in T-bills. Trend following dominates AUM, so the terms are often used as synonyms — they should not be. Carry, short-term, RV, and options sleeves are still managed futures.
Why it matters
It is one of the few liquid alternatives that can be long or short every major asset class without locating stock borrow. That is the structural edge and the source of crisis optionality.
Case
2022: equities and bonds both down; a diversified trend book was long rates shorts and commodity trends. The category label paid; a long-only ‘alts’ sleeve did not.
How to read it
Universe breadth and style mix first. A 12-contract equity-index timing book is not the SG Trend complex.