Managed futures generally offer which of the following benefits?

Managed futures typically provide higher average mean returns and Sharpe ratios than global equities. This is because managed futures strategies often employ a diverse range of trading techniques across various asset classes, including commodities, currencies, and fixed income. These strategies allow for both long and short positions, enabling managers to capitalize on both rising and falling markets.

The Sharpe ratio, which measures the risk-adjusted return of an investment, often tends to be higher for managed futures due to their potential to achieve returns without being closely correlated to traditional equity markets. This uncorrelated nature can provide diversification within a broader investment portfolio, thus enhancing overall performance.

In contrast, other options present aspects that do not accurately depict the benefits of managed futures. For instance, claiming that managed futures have lower average mean returns compared to global equities overlooks their potential for higher returns. Moreover, suggesting that they come with increased operational risk does not align with their structured approach to risk management. Finally, the idea that managed futures exhibit less volatility in returns than traditional equities can be misleading, as their performance can vary significantly depending on market conditions. Therefore, recognizing the potential for higher returns and improved risk-adjusted performance is central to understanding the benefits of investing in managed futures.