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Cedrus' Advantages

The Process

Innovative Investment Products

Alternative Investments

       
    Managed Futures and Commodities  
  Commodities
Commodities


  Currency
Currency
 
At Cedrus Investments, we offer clients broad guidance as to each individual’s suitability for an asset allocation towards commodities, as well as providing in-depth research and expertise on the implementation of investment vehicles incorporating commodity exposure in a portfolio.

Managed Futures

Managed Futures can be a valuable part of an overall asset allocation plan; its purpose is to add portfolio diversification, reduce overall portfolio volatility, and achieve higher overall portfolio performance over time when compared to traditional investment portfolios. A study by the Chicago Mercantile Exchange (CME) concluded that a portfolio with 20% Managed Futures has less risk than a portfolio with stocks and bonds alone.

Why Invest In Managed Futures?

Managed Futures offer four distinct advantages:

• Reduce portfolio volatility risk;
• Potential for enhanced portfolio returns;
• Ability to profit in any economic environment;
• Ease of global diversification

Commodities

Commodities are an interesting, and potentially rewarding, way to diversify your investment portfolio beyond stocks and bonds.  Commodities can be used as a diversifier to improve the risk and return profiles of different portfolios.  Because of their historical tendency to behave in an uncorrelated manner relative to more traditional financial assets, commodities are often used as a strategic hedge against inflation.Commodities are often characterized as a defensive asset class. They bear a low to negative correlation to traditional asset classes like stocks and bonds, which are closely correlated to each other and tend to be more sensitive to the movements of financial indicators. In an unanticipated inflationary environment, commodities tend to outperform traditional assets because investors are inclined to move away from paper assets and turn towards tangibles such as commodities.

 
 
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