The Bornhoft Group is an institutional managed futures investment advisor providing multiple advisor managed futures portfolios. Our investment approach is comprised of five distinct stages:
The Bornhoft Group works closely with clients to understand the goals of its proposed managed futures allocation, whether it is a basic allocation to the strategy, or a more complex approach intended as a portfolio overlay or enhanced indexing.
Once the investment strategy is identified, The Bornhoft Group works closely with the client to design the account structure.
The Bornhoft Group identifies advisors from its extensive database of more than 1100 of the world’s leading managed futures investment advisors, using an intensive quantitative analysis process focused on a wide range of metrics from factor analysis to return correlations.
The detailed quantitative analysis is supported by extensive qualitative due diligence, including detailed reviews of trading activity, and manager interviews.
Only managers meeting our stringent quantitative and qualitative standards are considered for inclusion in the multiple advisor portfolio.
Once advisors are selected, the development process moves to design a portfolio that is optimally weighted to each trading advisor, with the objective of generating superior risk-adjusted returns, consistent with the client’s specific requirements.
The Bornhoft Group’s sophisticated optimization methods involves mean variance models, correlation analysis and return/risk analytics, combined with qualitative analysis of the advisors’ strategies to ensure diversification across markets and trading styles.
Past performance is not indicative of future results.
Once the portfolio begins trading, The Bornhoft Group rigorously monitors manager performance, to ensure that the portfolio is not impacted by such concerns as style drift — a manager moving away from his core investment competence — or unexpected changes in a manager’s risk profile.
The Bornhoft Group conducts risk management at both the manager and portfolio level in an effort to ensure that, to the greatest degree possible and even in tumultuous markets, investors are not surprised by portfolio performance. Managed Futures and Options are speculative, involve a high degree of risk and may not be suitable for all investors.
Once an investment portfolio is implemented, The Bornhoft Group provides daily valuation, reporting and administrative services to its funds and institutional accounts, providing investors with a high level of transparency.