An investment manager advises a client to include a managed futures fund in their portfolio. This fund systematically trades liquid futures contracts across various asset classes, primarily using quantitative models to identify trends. Which hedge fund strategy best describes this approach?

Question: An investment manager advises a client to include a managed futures fund in their portfolio. This fund systematically trades liquid futures contracts across various asset classes, primarily using quantitative models to identify trends. Which hedge fund strategy best describes this approach?

Answer options:

• Event-Driven
• Relative Value
• Macro ✅ Managed Futures/CTAs

Correct answer: Managed Futures/CTAs

Explanation: Managed Futures funds, often run by Commodity Trading Advisors (CTAs), specialize in trading futures contracts on commodities, currencies, fixed income, and equities. They typically employ systematic, trend-following strategies, which aligns perfectly with the description.