What’s Trending in Managed Futures
Michael McClain | Alternative Investment Research Analyst and Due Diligence
Last Updated: June 09, 2026
Strategy Background
Managed futures strategies, defined as systematic, trend-following funds managed by Commodity Trading Advisors (CTAs), have delivered compelling risk-adjusted returns in the alternatives investment strategy universe through the first half of 2026. The sustained directional moves due to the AI-driven equity rally, Middle East conflict, and stickier inflation have combined to deliver a diversified long/ short trading environment across asset classes. For comparison, a market with limited meaningful trends across asset classes and marked by consistent reversals is often a worse case scenario for the average medium-term trend-follower.
Current Positioning
As of the beginning of June, the managed futures industry has built up several noteworthy positions that current investors should be monitoring:
Equities: Long — But Asymmetrically Risky
Trend-following funds remain net long global equities, with the AI-driven rally in the U.S. driving much of the recent increase in long exposure. The near-term outlook for equity positioning carries notable asymmetry, as a sustained market decline could trigger significant selling pressure, and potentially amplify any drawdown.
Commodities: Energy Trends Continue
Long oil and gold have been the main contributors to returns, however, both markets have declined from recent highs; with gold experiencing a significant move down after briefly breaking through the $5,000 level. Elevated geopolitical risk premiums, central bank demand, dollar weakness, and rising fiscal deficit concerns all provided fundamental tailwinds to the technical trend. A sustained trend across several futures contracts in this sector would provide an attractive source of diversification from the trends in the equity and bond markets.
Fixed Income: Short and Building
There has been a consistent build-up in short bond exposure over the course of the year, as inflation remains above target and any thought of a rate cut has shifted to a rate hike. This is a meaningful change in positioning from where most trend-followers entered the year, and it reflects the degree to which the macro narrative has repriced.
Currencies: Mixed U.S. Dollar Signals
In currencies, trend-following strategies have maintained a short U.S. dollar bias, though the strength of that trend has begun to soften. Long positions in the Australian dollar and Mexican peso versus the dollar have been profitable, while the one consistent long U.S. dollar exposure has been against the yen. The dollar weakness theme has been supported by a combination of fiscal deficit concerns, tariff uncertainty, and a relative growth deceleration narrative that gained traction in Q1 and early Q2. However, with U.S. inflation remaining sticky at elevated levels and the Federal Reserve increasingly hawkish, a dollar stabilization, or partial reversal, is a credible scenario that could pressure the current short book. Currency trend signals tend to be among the slower-moving in a managed futures portfolio, meaning a meaningful shift in dollar direction would take time to generate a signal flip, but investors should be alert to a potential squeeze if the macro backdrop shifts abruptly.
LPL Research Takeaway
Managed futures have offered persistent, cross-asset trends, providing diversification, and delivering compelling returns amid macro uncertainty. The risks, including trend reversals, crowded equities, and potential regime shifts, should be watched as we enter the second half of the year and warrant position-sizing discipline.
As always with systematic strategies, discipline comes not from predicting when trends will end, but from ensuring that risk management frameworks are robust enough to capture the reversal signal without giving back an outsized portion of the gains. We continue to view managed futures as a core diversifier within a well-constructed alternatives sleeve, and the 2026 environment has reinforced rather than undermined that view.
Important Disclosures
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors. To determine which investment(s) may be appropriate for you, please consult your financial professional prior to investing.
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk.
Indexes are unmanaged and cannot be invested into directly. Index performance is not indicative of the performance of any investment and does not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.
This material was prepared by LPL Financial, LLC. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
Unless otherwise stated LPL Financial and the third party persons and firms mentioned are not affiliates of each other and make no representation with respect to each other. Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services.
Asset Class Disclosures –
International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
Bonds are subject to market and interest rate risk if sold prior to maturity.
Municipal bonds are subject and market and interest rate risk and potentially capital gains tax if sold prior to maturity. Interest income may be subject to the alternative minimum tax. Municipal bonds are federally tax-free but other state and local taxes may apply.
Preferred stock dividends are paid at the discretion of the issuing company. Preferred stocks are subject to interest rate and credit risk. They may be subject to a call features.
Alternative investments may not be suitable for all investors and involve special risks such as leveraging the investment, potential adverse market forces, regulatory changes and potentially illiquidity. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.
Mortgage backed securities are subject to credit, default, prepayment, extension, market and interest rate risk.
High yield/junk bonds (grade BB or below) are below investment grade securities, and are subject to higher interest rate, credit, and liquidity risks than those graded BBB and above. They generally should be part of a diversified portfolio for sophisticated investors.
Precious metal investing involves greater fluctuation and potential for losses.
The fast price swings of commodities will result in significant volatility in an investor’s holdings.
This research material has been prepared by LPL Financial LLC.
Not Insured by FDIC/NCUA or Any Other Government Agency | Not Bank/Credit Union Deposits or Obligations | Not Bank/Credit Union Guaranteed | May Lose Value
For Public Use – Tracking: #1120564
