PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RETURNS.
OBJECTIVE: To produce low-correlation returns using a seasonal approach to futures spread trading.
PHILOSOPHY: We believe futures generally provide low correlation compared to other asset classes. Spreads generally provide even lower correlation to other asset classes - even when compared to most managed futures strategies which are typically trend-following. Seasonality can significantly shape sentiment and short-term flows, thus influencing the market over the short-term. Diversification across many categories and instruments generally results in risk mitigation.
STRATEGY: The trading strategy is to trade futures contracts using seasonal spreads, in a diversified manner. No equity index futures, crypto-currency futures, options on futures, or individual security futures will be used.
PROCESS: We target total margin commitments generally between 5-20% of assets, with a target of 12.5%. We typically employ loss limit targets on individual spread positions and maximum allocations for each category. We use spreads across a wide variety of instruments and categories with varying time horizons and sides (bull, bear, and inter-commodity spreads) in an attempt to aid in risk mitigation through diversification.
Bensboro Advisors, LLC (the "Trading Advisor") was organized in September 2014 as a Texas Limited Liability Company. It is registered with the Commodity Futures Trading Commission (“CFTC”) as a Commodity Trading Advisor ("CTA"), and it is a member of the National Futures Association ("NFA").