High-Performance Managed Futures: The New Way to Diversify Your Portfolio -- Contents -- Preface -- Acknowledgments -- Disclaimer -- Chapter 1: Understand It: The Truth about Risk and Misunderstood Investments -- WHAT IS THIS "MANAGED FUTURES" I'VE NEVER HEARD ABOUT? -- STOCK MARKET "SAFETY" AND OTHER MYTHS -- INVEST WITH STOCK MARKET NEUTRAL PROGRAMS -- THE STOCK MARKET IS NOT "SAFE" OR "CONSERVATIVE" AND DOES NOT OFFER TRUE DIVERSIFICATION -- IT WORKS IN PRACTICE BUT DOES IT WORK IN THEORY? -- WALL STREET'S MOTIVATION FOR KEEPING MANAGED FUTURES A SECRET -- Chapter 2: Define It: Establish Performance and Risk Targets -- THE SIMPLE MANAGED FUTURES DEFINITION -- TARGET RISK/REWARD PROFILES -- Chapter 3: Work With It: Build Basic Portfolios Using Targets -- PORTFOLIO DIVERSIFICATION VERSUS INDIVIDUAL MANAGER SELECTION -- INDIVIDUAL CTA ANALYSIS AND PORTFOLIO CONSIDERATIONS -- Chapter 4: Realize It: The Old Way versus High Performance -- THE FASTEST-GROWING ASSET CLASS? -- THIS UNIQUE AND VERY SPECIAL ASSET CLASS -- MANAGED FUTURES DEFINED -- DECODING THE D DOC -- Chapter 5: Don't Be a Victim: Leverage Managed Futures Regulation and Account Structure to Avoid Hedge Fund Fraud -- MANAGED FUTURES REGULATION, ACCOUNT STRUCTURE, AND PROTECTION -- TRANSPARENCY: THE ABILITY TO SEE AND UNDERSTAND AN INVESTMENT -- AUDITING PERFORMANCE AND MONEY FLOW -- TIGHT REGULATORY CONTROL: MEET THE NFA AND CFTC -- Chapter 6: Recognize It: Volatility + Volatility and Lintner's Message -- VOLATILITY USED TO REDUCE VOLATILITY -- ALL VOLATILITY IS RISKY. . . TO DIFFERENT DEGREES -- STANDARD DEVIATION AS MEASURE OF VOLATILITY -- Chapter 7: Use It: Reward-Adjusted Deviation (RAD) Considers Past Probability and Rewards Success -- STUDY 1: EXPLORING RAD WITH MATH -- THE TEST OF SUCCESS -- STUDY 2: AVERAGE DRAWDOWN: RAD VERSUS STD WHEN ACTUAL RISK IMPROVES.

STUDY 3: WHERE CTAs FALL BASED ON RAD -- RISK "INDICATORS" DON'T INDICATE RISK -- Chapter 8: Protect it: Principal-Protected, Conservative, and Risky Investments -- DON'T BE FOOLED -- FOUR STEPS TO CREATING PRINCIPAL-PROTECTED PRODUCTS -- STRATEGIES TO MAXIMIZE RETURN -- Chapter 9: Use All of It: Overlooked Points of Correlation -- IS MANAGED FUTURES THE WORLD'S MOST NONCORRELATED ASSET? -- BALANCE RISK AND RETURN: MANAGED FUTURES CUSHION DURING STOCK TURBULENCE -- CORRELATION STUDY: MAJOR INDEXES -- MANAGED FUTURES NONCORRELATION IS NOT AN ACCIDENT -- TRADITIONAL RETURNS-BASED CORRELATION LOGIC IS FAULTY -- NONCORRELATION WITH STOCKS COULD BE THE INVESTOR'S BEST FRIEND -- Chapter 10: Build It: CTA Evaluation and Portfolio Construction -- TRANSLATING INVESTOR GOALS INTO PORTFOLIO DESIGN STRATEGY -- WHAT IS THE BEST METHOD TO IDENTIFY SUCCESSFUL CTAs? -- PORTFOLIO BUILDING WITH VOLATILITY SKEWING -- HIGH-PERFORMANCE MANAGED FUTURES PORTFOLIO-BUILDING EXERCISE -- WHY INVESTORS MUST LOOK PAST SIMPLE AVERAGE RETURN HEADLINES -- THE HIDDEN RISK IN UNEVEN RETURNS DISTRIBUTION -- DON'T JUDGE BY LOOKS ALONE -- Chapter 11: Understand It: The Naked Truth Behind Managed Futures Risk -- THE SIMPLE WAY TO LOOK AT RISK MANAGEMENT: CHOKE POINTS -- LEVERAGE CAN MAGNIFY WINS AS WELL AS LOSSES -- JUST ASK A BANKER -- EXPLORING INDIVIDUAL MANAGER RISK -- FRAUD RISK -- Chapter 12: Don't Sit Back: Active Management of Risky Investments -- ARE THE BIGGEST RISKS THOSE THAT ARE UNKNOWN? -- A GRAPHICAL LOOK AT THE MANAGED FUTURES ACCOUNT -- INDIVIDUAL MANAGER RISK -- THE FUTURE OF MANAGED FUTURES CAN BE FOUND IN ITS HISTORY -- CONCLUSION -- Appendix A: HPFM Strategy Benchmark Performance Study -- Appendix B: Twelve Questions Investors Should Ask . . . of Themselves -- Appendix C: Selecting a Commodity Trading Advisor.

INVESTOR EXPERIENCE: A REQUIREMENT FOR UNDERSTANDING STRATEGIES -- CHOOSING CTAs BASED ON RISK-FOCUSED CRITERIA -- FOCUSING ON SHORT-TERM GAINS IS SHORT-SIGHTED: CONFUSING ONLINE CTA RESEARCH -- CHASING THE HOT DOT CAN BE LIKE A DOG CHASING ITS TAIL -- CTA STRATEGY CONSIDERATIONS AND MARKET TIMING -- Appendix D: Identifying True Risk and Utilizing the Best Managed Futures Performance Measure -- KEY TO SUCCESS: CONSIDER RISK FIRST, THEN RETURN -- POPULAR PERFORMANCE/RISK MEASURES -- OVERLOOKED PERFORMANCE MEASURES -- OTHER PERFORMANCE MEASURES -- RISK MEASURES SHOULD CONSIDER PROBABILITY OF SUCCESS AND SIZE OF WIN -- Appendix E: Regulated versus Unregulated Entities -- WHEN UNREGULATED ENTITIES ENSNARE REGULATED FIRMS -- Appendix F: Markowitz and Lintner: A "Modern" Investment Method Half a Century Old -- INVESTORS SHOULD ONLY TAKE RISKS FOR WHICH THEY ARE PROPERLY COMPENSATED -- HOW IT WORKS: MANAGING RISK THROUGH INTELLIGENT DIVERSIFICATION -- THE BOTTOM LINE UTILITY OF MPT -- LINTNER: BUILDING A DIVERSIFIED PORTFOLIO USING MANAGED FUTURES -- Notes -- About the Author -- Index.