The Patience Premium

Virtus Funds

Research

4 Pages

While managed futures strategies are in the midst of a historically challenging period of performance, the strategy historically performed well in the time periods following drawdowns.

Key Takeaways

Historical resilience after drawdowns: Managed futures strategies have typically rebounded strongly after significant losses, indicating a potential "patience premium" for long-term investors.
Cyclical performance patterns: These strategies tend to thrive during sustained macroeconomic trends but may struggle during periods of rapid market reversals.
Potential in current macro environment: The evolving landscape, characterized by stagflation and deglobalization, may offer new opportunities for trend-following strategies to capitalize on emerging trends.
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