What's Ahead for Managed Futures?

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Jan. 24 (Bloomberg) -- Poplar Jackson Managing Director Bradley Rathe discusses commodities, volatility and managed futures on Bloomberg Television's "Money Moves." (Source: Bloomberg)

Almost a dirty term.

These products are in the gutter.

Most people, if they bought them, did not make any money.

What does this mean for your business?

You have to do differentiate.

There is managed futures which is systematic, and there is global macro.

It has actually been better.

When we mention volatility, we have a chart to show how comment has been.

It is hard, if you are counting on swings and the swings do not happen.

You get the trend, and it pops right back down.

That has been the issue.

Just like last year, the foreign investor one.

-- won.

You are going to have volatility as the fed comes off.

Today is a great day.

You see volatility in the space.

You have been dealing more with the global macro, with managed futures, and not just a problematic one.

A lot of people see managed futures as a trend-following bucket.

There is more in the managed futures space.

I think the lingo really is important.

Managed futures does tend to mean that to most people.

If there are no trends to follow, with global macro, a lot of the best hedge fund managers can take a look at these trends that are developing very, very rapidly.

They play with futures to get at these trends very quickly.

You can close it out every single day.

You do not have overnight risk.

A lot of institutions are looking at this now as they look at qe coming off an volatility rising over the next year.

We build this map.

It is about a year before they happen.

If you can look at this chart on screen, you will see this fragile five.

In fairness, we are talking about a year ago.

Ems currency selloffs.

We are looking for volatility?

Here is the volatility.

What does this mean as far as how you are managing your business there?

A lot of things with currency.

Commodities are priced in dollars.

That is a big area we do a lot of work in the dollar, and how the dollar is going to move.

I think looking at the fragile five, looking at current account, seeing what is happening in the space, there is going to be a lot of activity.

How much is the fed coming off tapering a little bit?

I think you are going to see more and more of that throughout.

It is great to see volatility finally come into the marketplace and create new opportunities for managed futures, asset classes.

One of the things this illustrates that people did not appreciate is that qe is not a u.s. thing.

It is done in the u.s., but the implications are profound around the world.

We have over a trillion dollars of new liquidity.

A lot of that money eventually finds its way into foreign countries, looking for yield.

As qe comes off, the money tends to come back.

Those countries really have problems managing the current account deficit.

Nothing happens in a vacuum.

It seems for your business, it is all about currencies.

You feel like you have some visibility.

But with a wildcard.

Without a doubt.

You do have supply and demand.

Look at what happened with natural gas.

You live in the midwest.

You understand the cold weather.

You do not have to go to the midwest to understand cold weather.

I am freezing and complaining about it to anybody who will listen.

There is the natural gas chart.

You have had over a 20% move this year alone.

You are creating some volatility.

The other space which is a pseudo-currency -- silver.

What is the best asset class so far?

Gold miners.

You are starting to see movement.

That is also all included.

Thank you for stopping by.

And of course bob rice is

This text has been automatically generated. It may not be 100% accurate.


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