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Ramius Releases White Paper: Allocating to Managed Futures: Performance Considerations within the Risk Parity Framework



  Ramius Releases White Paper: Allocating to Managed Futures: Performance
  Considerations within the Risk Parity Framework

Business Wire

NEW YORK -- February 6, 2013

Ramius LLC (“Ramius”), the global alternative investment management business
of Cowen Group, Inc. (“Cowen”) (NASDAQ: COWN), today provided a review of
recent managed futures performance, the nature of certain market phenomena
impacting trend following strategies, and the role these strategies have
within the asset allocation framework. The review was co-authored by Ramius
Trading Strategies (RTS) Chief Executive Officer, William (“Bill”) Marr and
Director of Investment Research, Alexander Rudin, PhD.

Bill Marr said, “One of the biggest challenges the investment management
community faces today is how to allocate capital without having to explicitly
predict which assets will outperform others over a given time period. This
Ramius white paper illustrates a way to address this issue using the approach
known as Risk Parity Based Asset Allocation. Risk parity funds seek to
allocate capital primarily focusing on estimated risks of available investment
opportunities rather than expected returns. At Ramius, we believe this
philosophy allows investors to broaden their investment options, while at the
same time maintaining a structurally sound, diversified portfolio.”

The paper revolves around two essential questions:

I. What percentage of the investment portfolio should a given investor
allocate to Managed Futures, if any?

II. Do Managed Futures still present a differentiated and valid investment
opportunity despite back to back years of disappointing performance?

With regard to the first question, the paper explores a disciplined portfolio
construction methodology using a risk parity framework. Emphasizing
non-correlation, risk reduction, and monthly rebalancing, the authors examine
the efficiency of various portfolios using stocks-bonds-managed futures over
the past 15 years.

The paper also discusses the recent performance of managed futures and
highlights three main factors negatively impacting the strategy over the
recent market cycle. Examined from a historical and macro perspective, the
authors argue that these factors are likely temporary and that a consistent
allocation to managed futures will likely enhance investor portfolios going
forward.

The white paper is available on Ramius’ website at:

http://www.ramiusmutualfunds.com/pdf/Managed-Futures-and-Risk-Parity.pdf

RTS was founded in September 2009 and is an affiliate of Cowen Group, Inc. and
Ramius Alternative Solutions. RTS offers multi-manager products investing in
outstanding independent managers in the managed futures and global macro
space. All RTS products utilize RTS’s managed account platform supported by
RTS’s proprietary risk and research systems as well as the operational
infrastructure of Ramius.

About Cowen Group, Inc.
Cowen Group, Inc. is a diversified financial services firm and, together with
its consolidated subsidiaries, provides alternative investment management,
investment banking, research, and sales and trading services through its two
business segments: Ramius and its affiliates makes up the Company's
alternative investment management segment, while Cowen and Company is its
broker-dealer segment. Its alternative investment management products,
solutions and services include hedge funds, replication products, managed
futures funds, fund of funds, real estate, health care royalty funds and cash
management services. Cowen and Company offers industry focused investment
banking for growth-oriented companies, domain knowledge-driven research and a
sales and trading platform for institutional investors. Founded in 1918, the
firm is headquartered in New York and has offices located in major financial
centers around the world.

About Ramius LLC
Ramius, the global alternative investment management business of Cowen Group,
Inc., offers a broad range of investment solutions to institutions and private
clients worldwide. Founded in 1994, Ramius and affiliates manage $10.4 billion
(as of October 1, 2012) across multiple asset classes and investing styles. A
significant portion of Cowen's proprietary capital is managed by Ramius in
strategies alongside our clients.

Contact:

Sard Verbinnen & Co
Dan Gagnier/Carissa Ramirez, 212-687-8080
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