Jason Whitby writes :

The first thing to realize is that “Managed Futures” is just an investment in future derivatives thats being managed. It could be a strategy focused solely on precious metals, or it might include every commodity, all the currencies, and all the capital markets. Additionally, a strategy can be long, short or both. A strategy could be based on an automated, rules-tracking process to “trend” to a specific benchmark, or open to wherever the commodity trading advisor’s intuition wants to go. The number of iterations is endless. The core issue here is that Managed Futures is actually a motley mix of eclectic investment strategies, not an asset class, and that is a very important distinction.

I agree on that excerpt. Earlier today I wrote this to colleagues about Whitbys article:

The seeking alpha author is wrong on much, but I have always known that there was a big problem grouping all strategies under the heading managed futures. especially when the managed futures big winners we all knowall use one strategy (read: trend following ). Chicago wants to brand the word futures as opposed to focusing on strategies. Focusing on the instrument, just so every strategy imagined can be grouped together in an effort to bring everyone along for the ride, is terribly inefficient and unfocussed marketing. Generally, the public has remained confused by the decision to build the story around the word futures.

Managed Futures: This is a term that describes regulated fund managers who use futures to trade for clients. It is an awful term because it fixates on the instrument (futures), not the strategy. Here’s the dirty little secret: Almost all successful managed futures trading firms use a trend following strategy.

Note. I have met many, many trend followers over the years. Many relationships have developed based on mutual trust and common beliefs. That said, at the end of the day my role is not to focus on promoting particular managers or traders, rather my interest has always been learning from really good trend traders, passing along lessons and ultimately using their success to demonstrate trend following potentiality. That is one of the great aspects of trend following: tremendous evidence exists that ANYONE can step up and make it happen. Thats INSPIRATIONAL. Thats EXCITING.