Managed Futures Failed to Capitalize on Volatility and Market Sell-Off

With a downturn increasingly likely, the question looming over trend-following funds is whether they will once again protect investors.

Directly above view of people with umbrellas walking on a crosswalk on a rainy day in the city. Sichuan Province, China

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Most commodity trading advisors and managed-futures funds had a rough time in February.

Many of the large or high-profile funds that mostly deploy trend-following strategies lost money, although some remain in the black for the year. But as stock market volatility stays high and stocks seem headed toward a bear market, the big question is whether the trend-following computer-driven funds will once again thrive as an alternative asset class.

CTAs,

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