Our weekly newsletter is up and this time we’re talking about some of the smartest people in the industry: the folks at Sunrise Capital. They have long been leaders in the space, with a fierce and admirable dedication to systematic trading and the vigorous research it requires. We’ve got a thing for strong argumentation and debate, and if you’ve ever heard their advocates speak at a conference or event, you know they make a strong case for the systematic approach.

But it’s their most recent work that has our office talking. Revisiting Kat’s Managed Futures and Hedge Funds: A Match Made in Heaven, penned by Sunrise’s Director of New Strategies Development Thomas Rollinger, updates the 2001 work of Professor Harry M. Kat of the Cass Business School – one of the more thorough explanations of the benefits of managed futures in a traditional portfolio allocation. But it also goes beyond Kat’s initial work, providing an in-depth look at how kurtosis and skew can be altered in such a way that make the risk profile of the overall investment portfolio far more attractive.

So, this week, our newsletter will take a look at both Kat’s previous work and the new Sunrise paper, explaining the differences and the major takeaways from the research, explaining how this can apply to your own investment strategy. In a time of heightened economic uncertainty, it’s only fitting to emphasize how, exactly, managed futures is what you truly need in your portfolio. Read on to see what we mean.