DBi's Andrew Beer promotes managed futures as bond alternative

by@CNBC

Summary

Andrew Beer, co-founder of DBi, suggested that investors should reconsider their bond allocations in favor of managed futures, which he believes could enhance traditional 60/40 portfolios. During an appearance on CNBC's "ETF Edge," Beer pointed out that bonds have been “dead money” for the past decade and that managed futures could better counterbalance stocks during market volatility, which has increased due to concerns about debt and artificial intelligence. His fund, the iMGP DBi Managed Futures Strategy ETF, has seen nearly a 19% increase in 2026. While other experts, like Nate Geraci from NovaDius Wealth Management, recognize the potential for managed futures to outperform in volatile markets, they caution that bonds still play an important role in diversified portfolios.

Tokens

$DBMF

Analysis

DBi: DBi is a firm focused on hedge fund strategies, with a particular emphasis on managed futures approaches. Co-founded by Andrew Beer, the firm develops products that make sophisticated strategies accessible through ETFs. In this news, DBi is positioned as an advocate for using managed futures exposure as a tactical alternative to traditional bond holdings in investor portfolios. Andrew Beer: Andrew Beer serves as co-founder and managing member of DBi, where he oversees managed futures strategies. He argues that these approaches offer nimble positioning and low correlation to both stocks and bonds, making them suitable for hedging crises better than traditional fixed income. In the recent CNBC interview, Beer discusses the limitations of bonds as dead money and promotes managed futures as a superior diversifier for contemporary portfolios. Nate Geraci: Nate Geraci is president of NovaDius Wealth Management and co-founder of the ETF Institute. He focuses on portfolio construction and the role of alternatives in diversification. In the news, Geraci acknowledges challenges in fixed income but maintains that bonds still have a place alongside strategies like managed futures in balanced allocations. iMGP DBi Managed Futures Strategy ETF: The iMGP DBi Managed Futures Strategy ETF, ticker DBMF, is an exchange-traded fund designed to replicate the performance of leading managed futures hedge funds in a low-cost and liquid vehicle. It enables investors to access long and short positioning across global markets without direct hedge fund investments. The news highlights the ETF as a tool for counterbalancing stocks during periods of rising volatility and market turbulence. Managed Futures Approach: Managed futures strategies enable tactical long and short positioning across global markets to capitalize on or hedge against turbulent events. Portfolio Diversification: Alternatives such as managed futures can serve as a complement in diversified portfolios that include both stocks and bonds, addressing challenges in traditional fixed income allocations. Asset Allocation Challenges: There is growing discussion around limitations in conventional 60/40 portfolio models due to evolving market volatility and the performance of bonds.

Categories

macro
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