Leveraged tech plus managed futures beats diversified
The author runs a 40% TECL position alongside managed futures and semis, claiming this combination triples total return with much less drawdown than a diversified multi-fund portfolio and that it made money in 2022. The mechanism is leveraged tech beta paired with diversifying managed futures to dampen drawdowns. No specific catalyst or time horizon is given; the main risk is the inherent volatility decay and drawdown risk of a 3x leveraged tech ETF.
The author asserts that adding KMLM (or DBMF) to a portfolio would have produced more than 5x the original poster's backtested returns at equal drawdown. The mechanism is managed-futures trend-following diversification improving risk-adjusted returns. No catalyst or horizon is specified; the main risk is that backtested managed-futures performance may not persist.
The author claims DBMF, like KMLM, would have more than 5x the original poster's backtested returns at equal drawdown when added to the portfolio. The mechanism is managed-futures trend-following diversification. No catalyst or horizon is given; the main risk is reliance on simulated backtest results.
The author holds a small GDE position, a fund stacking equity and gold futures exposure, as a diversifier without sacrificing capital space. The mechanism is gold futures providing diversification alongside equity beta. No catalyst or horizon is specified; the main risk is gold price volatility and leverage.