At the Money: Seeking Uncorrelated Returns

Managed futures as a portfolio diversifier, especially through efficient ETFs, is the central topic. Andrew Beer, founder of Dynamic Beta Investments, explains how his ETF DBMF aims to replicate pricier managed futures portfolios, offering a solution for the traditional 60-40 investor needing diversification beyond stocks and bonds. He argues that managed futures can detect and capitalize on significant global changes, like rising interest rates or currency shifts, acting as an early, contrarian strategy. DBMF trades in major, liquid instruments—S&P 500, fixed income, gold, oil, euro, and yen—to efficiently capture these trends. Beer emphasizes the importance of simplicity and low costs, aiming to outperform expensive hedge funds and make the strategy accessible to average investors.