This study explores the risk-return tradeoff in investing by examining two financial instruments: commodity trading advisors and managed futures funds. It discusses the differences between these instruments and hedge funds and mutual funds, as well as the legal definitions of the funds and their investment criteria; conducts a performance analysis of these instruments, showing that they provide returns that are higher than the average market returns in bear markets, while carrying lower risk; shows that the superior performance of commodity trading advisors and managed futures funds can be explained by managerial skill; and describes how many financial and macroeconomic factors are statistically unrelated to their performance, except the value premium factor and industrial production growth. Dissertation.com is an imprint of Universal Publishers. Annotation ©2020 Ringgold, Inc., Portland, OR (protoview.com)
