What We Provide
Blue Sky Capital provides its clients with the opportunity to invest with all available professional Commodity Trading Advisors (CTA’s) and Money Managers.
We are proud to be independent, offering you the freedom and flexibility to work with any professional money manager that fit’s the firm’s criteria of track record, strategy, and performance & dynamic ability to manage risk.
Our strategic approach to managed futures focuses not on trend-following, but rather on finding tactical specialists who add alpha, have unique trading skills in a special niche, and who have low correlation to each other. Most importantly, we seek discretionary CTAs who have proven abilities to navigate the futures markets in a manner that minimizes volatility yet successfully delivers alpha.
Our Service Principles
- Ensure Risk Management
- Remain upfront
- Clarify expectations
- Deliver results
- Provide Liquidity & Transparency
- Extend trust
Leaders in the Alternative Investment space
Alternative investments include private equity, hedge funds, managed futures, real estate, commodities and derivatives contracts. Blue Sky Capital specializes in active, sophisticated alternative products to be used as a compliment to conventional investment portfolios consisting of stocks, bonds and cash. Most alternative investment assets are held by institutional investors or accredited, high-net-worth individuals because of the complex natures but recently have made a massive expansion into the retail space.
Diversification and Hedging opportunity
Alternative investments typically have a low correlation with those of standard asset classes, which makes them suitable for portfolio diversification. Because of this, many large institutional funds such as pensions and private endowments allocate a portion of their portfolio to alternative investments such as Managed Futures. Investments in hard assets such as gold and oil also provide an effective hedge against rising inflation, as they are negatively correlated with the performance of stocks and bonds.
The goal for an alternative investment portfolio is to have a low correlation with those of standard asset classes, which makes them suitable for portfolio diversification.
Opportunities include a diverse subset of active hedge fund strategies that trade liquid, transparent, centrally-cleared exchange-traded products, and deep interbank foreign exchange markets. Managers in this sector are called commodity trading advisors (CTAs) and their strategies are largely focused on financial futures markets with additional allocations to energy, metals and
With the ability to go both long and short, these can be highly flexible financial instruments with the potential to profit from rising and falling markets.
Using alternative investments on a global scale provides protection against geo-specific variables such as poor weather or political unrest, which could affect some commodities or financial futures more than others. Investments in hard assets such as gold and oil also provide an effective hedge against rising inflation, as they are negatively correlated with the performance of stocks and bonds.
Performance-based fee structure and Tax advantages
Alternative assets typically may have a fee structure heavily tied to performance on the account compared to conventional assets. In regards to tax implications, Managed Futures specifically operate with a 60/40 tax advantage where no matter how long the investment is held 60% of capital gains are considered Long term.
Separately Managed Account (SMA) structure. A SMA is a portfolio of assets under the management of a professional investment firm.
Customization is a key differentiator in the marketplace for SMA’s. A shift away from traditional style box investing to outcome-oriented solutions is also fueling the movement to SMAs, as investors express greater desire for products addressing income, longevity and volatility risk.
In the wake of the financial crisis, transparency has become even more important to clients. With SMAs, advisers and clients see their actual holdings. They also receive full details on fees. This level of transparency lets high-quality asset managers prove their worth.
SMA’s provide excellent vehicles to assess and balance tax liabilities. Many investors are seeking tax advantages mutual funds do not offer. Often trades can be balanced to address tax loss and gain harvesting. That can be highly attractive to investors who have large taxable assets and want access to particular portfolio managers or investment strategies.
Having a third party hold custody of the funds is the best way for things to be structured. The preferred way to have an arrangement with a money manager is to have a separately managed account at a brokerage firm and the manager can only access the account to make trades and if arranged for it, charge and collect their fee from the account.
The responsibility of a regulated financial market is to protect the rights and interest of the common investor by enforcing the required set of protocols. Regulators establish requirements on trade reporting, dispute handling mechanisms, and disciplinary actions against the non-compliant offenders.
A derivatives contract can be traded on a stock/index or on forex/commodity/futures and different US organizations regulate these categories.
Contracts traded over stock/index are overseen by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Contracts over forex/commodity/futures are watched over by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA).