One of the key developments in portfolio management has been the growing focus on risk premium investing. Whether called risk premiums, exotic beta, or some other name, more investors want to divide up their risks through the major market factors and not just focus on market cap weighted indices. There is still ambiguity on what are the risk premiums that should be the focus of investor attention but there is general agreement that we can classify them into a set of categories:
Hence, there is a reason to mix managed futures with some swap or cash strategies or structures. For example, there is no direct way managed futures can get exposure to a credit risk premium, so mixing managed futures which focuses on momentum with credit exposure through collateral usage allows for a combination of risk premiums.
A full complement of risk premiums can be accessed for full global macro investing through the more innovative use of collateral. Since most managed futures only use about 20 percent or less of cash for margin, the excess cash not used for margin can be employed in other strategies to access alternative risk premiums.