<p>Managed Futures are investment strategies that employ futures contracts to generate positive returns regardless of market conditions. They are a type of alternative investment that uses trend-following systems and other quantitative models to trade across multiple markets.</p>

<h2>How It Works</h2>
<p>Managed Futures use a variety of strategies to capitalize on market trends. These strategies typically involve:</p>
<ul>
  <li><strong>Trend Following</strong>: Identifying and profiting from sustained movements in asset prices.</li>
  <li><strong>Counter-Trend Trading</strong>: Profiting from short-term market reversals.</li>
  <li><strong>Market Neutral Strategies</strong>: Hedging long positions with short positions to minimize market exposure.</li>
</ul>
<p>Futures contracts, such as those for commodities, currencies, fixed income, and equities, are the primary instruments used. These contracts allow investors to gain exposure to the underlying asset without owning it directly.</p>

<h2>Why It Matters</h2>
<p>Managed Futures can play a crucial role in a diversified investment portfolio due to their low correlation with traditional assets like stocks and bonds. This low correlation can provide a hedge against market downturns and enhance overall portfolio performance. For instance, during the 2008 financial crisis, many Managed Futures strategies generated positive returns while traditional investments suffered significant losses.</p>