Managed Futures Simplified: The Impact of Selective Factor Analysis

Futures Graphic

People often ask us at DBi how it’s possible to emulate the managed futures space with a limited set of instruments, given that a typical managed futures fund invests in 100+ positions. The answer lies in the power of simplification through strategic factor selection.

We’ve prepared an animation that sheds light on this approach, demonstrating how a carefully chosen set of factors can explain a significant portion of the price movement of most futures instruments across various asset classes. This isn’t just theory; it’s a practical guide to understanding and leveraging the essence of managed futures with efficiency and insight.