Meyer Capital Management, Inc. (MCM) is a leading alternative
asset manager specializing in managed futures. MCM serves
those investors seeking to diversify their current equity and fixed
income portfolios. Utilizing global markets in foreign exchange,
financial futures, and commodities, our fundamental objective
is to strategically participate in both rising and falling price
movements that result from various economic supply and
demand imbalances. With access to a vast array of markets
and financial instruments, and combined with a strict risk
management policy, MCM offers an attractive risk-adjusted
Managed Futures -
The Ability to Profit in Virtually Any Economic Environment
Academic research has shown that the returns generated by a
managed futures program are not necessarily dependent upon
the same economic factors that benefit a typical stock and bond
portfolio. Most traditional managers are restricted by govern-
ment regulation from participating in the unique opportunities
which exist by holding both long and short investment positions
in a wide variety of global financial instruments. A volatile
economic environment, which can cause stress to most equity
and fixed income investments is often the optimal setting for
our investment program. During inflationary times, hard
commodities such as foreign currencies, energies, and gold tend
to appreciate in value. During deflationary times, we have the
same potential to profit by selling into a declining market with
the expectation of buying back the position at a lower price.
The flexibility that a managed futures investment can offer
allows the investor to be better positioned for a greater number
of market environments and can lead to a smoother return
stream for the investor's overall portfolio.
Our Investment Philosophy
The foundation of our investment strategy is based on the research we
have done in economic, statistical, and behavioral theory. Through the
use of quantitative analysis, our well-researched investment process
uses a consistent approach whose fundamental goal is to find market
tendencies and characteristics that do not change significantly over time.
Our computer systems examine market data, searching for relationships
among movements in prices with the single objective of detecting patterns
of repetitive behavior.
We do not subscribe to the traditional "buy and hold" philosophy which
is prevalent in most stock and bond portfolios. Since there is no exit
strategy inherent to such a mindset, adhering to such a plan can lead to
staggering losses which can take years for the investor
The overall goal is to quickly
to recover. Instead, Meyer Capital Management’s approach
eliminate those positions that
is to limit the portfolio’s exposure by allocating no more
prove to be incorrect and main-
than 1% of risk capital to each position. Although the
tain those that are profitable.
percentage allocated to each individual market can be
influenced by the sector and portfolio weightings, the objective is to
quickly eliminate those positions that prove to be incorrect and main-
tain those that are profitable. Although there can be no guarantee that
losses will be limited to these predetermined levels, historical perfor-
mance returns have reflected that policy.
It is our belief that the success of an investment strategy is highly depen-
dent on the discipline of the manager to adhere to its requirements in
the face of market adversity. Although slight modifications are periodi-
cally made to portfolio weightings, position size, and trade execution,
the underlying philosophy of our approach is to extract market ineffi-
ciencies that we believe will not change significantly over time. This
philosophy requires a disciplined and systematic process. Unlike discre-
tionary traders, whose decisions may be subject to behavioral biases,
Meyer Capital Management follows a strict investment process that
through rigorous research has shown to have a positive expectation.
Global Portfolio Diversification
MCM has great flexibility in how and where we invest. The ability to
participate in a vast array of global markets is one of the primary reasons
our investment program is able to exploit the many opportunities that
lead to consistent positive returns for our clients. In doing so, we partici-
pate in only the most liquid markets throughout the world. This global
approach allows us to spread our risk across many different sectors, including
global interest rates, currencies, stock indices, energies, precious metals,
grains and other agricultural commodities.
Although the idea of global participation is not new to the astute investor,
most portfolios are highly correlated due to the long-only investment
strategies employed by the majority of equity and
The only way to avoid the one
fixed income managers. In today’s global economy,
dimensional approach that is
the price movement of stocks and bonds are becoming
ever more correlated from one country to the next. common in long-only investment
Consequently, the diversification that the investor strategies is to implement an
hopes to achieve by investing in other countries is unbiased dynamic investment
becoming more elusive than ever before. The only strategy that can profit from both
way to avoid the one dimensional approach that is
rising and falling markets.
common in long-only investment strategies is to
implement an unbiased dynamic investment strategy that can profit from
both rising and falling markets. It is this potential, the ability to participate
and profit regardless of market direction that makes our investment pro-
gram particularly appealing to the sophisticated investor.
Exchanges and Other Markets Traded
MCM trades in only those futures and forward markets that offer sufficient liquidity to minimize execution costs.
Chicago Board of Trade March a Terme International Sydney Futures Exchange
Chicago Mercantile Exchange Tokyo Commodity Exchange
Meff Renta Fija
Coffee, Sugar & Cocoa Exchange Tokyo International Financial
Montreal Exchange Futures Exchange
New York Cotton Exchange Tokyo Stock Exchange
Exchange of London Ltd. New York Futures Exchange Over-The-Counter-Foreign
London Commodity Exchange New York Mercantile Exchange
London International Financial Osaka Securities Exchange
London Metals Exchange Monetary Exchange
At its discretion, MCM may add or change those markets that are currently part of the MCM portfolio without prior notice.
Benefits of Managed Futures
Managed futures are increasingly becoming an
important asset class to include in a well managed
portfolio due to a number of appealing characteristics.
The returns generated by a managed futures program are not
necessarily dependent upon the same economic factors that
benefit a traditional stock and bond portfolio. A volatile economic
environment, which can cause stress to most equity and fixed
income investments, is often the optimal setting for our investment
program. This non-correlated behavior suggests that a percentage
of assets committed to MCM can often lead to a smoother return
stream for the investor's overall portfolio.
Cash Efficient Alpha
Unlike traditional investments, a commitment to a managed
futures program does not necessarily require a cash deposit.
Instead, the investor may choose to use an existing stock or
bond portfolio as collateral to implement the manager’s program.
Thus, any profit (or loss) arising from the managed futures
product, is true alpha (value), since it is not generated at the
expense of the risk-free interest rate.
Thus, any profit (or loss) arising
For those who fund the account with
cash, interest can generally be earned from the managed futures product,
on the liquidating value of the account. is true alpha (value) since it is not
generated at the expense of the risk
Transparency is particularly vital to
free interest rate.
investors in alternative products such
as ours. Those who open an individual account with Meyer
Capital Management, Inc., will receive an account statement
each time we make a portfolio change. In addition, most
brokerage firms offer investors daily e-mailed or faxed state-
ments as well as 24-hour online account access. For those
who prefer to participate in our fund, you will receive a monthly
performance update from an independent certified public
accountant. This timely, convenient account information
makes monitoring your account very simple.
Committed to Success
Since its founding, MCM’s primary goal has been to achieve
superior risk-adjusted returns for its clients. Although there have
been periods when our clients have incurred losses, over the long
run, an investment into our program has produced attractive returns
with reasonable levels of risk. Although there can be no guarantee
that our program will produce the same levels of return in the
future, our research suggests that a reasonable allocation to our
investment program can lead to superior risk-adjusted returns for
the client’s overall portfolio.
Maintaining superior performance requires a commitment from
the investment firm to allocate the capital and effort necessary to
improve upon our existing investment strategies. At MCM, we are
constantly reviewing investment models and searching for modifi-
cations that have the potential to improve customer performance.
After these new models have been rigorously researched and tested,
they are then applied to proprietary funds for a reasonable amount of
time before being implemented amongst customer funds.
MCM is dedicated to meeting the needs of each client we serve.
We continuously strive to improve our communication with clients
whether it be via phone, website, or printed material. Up-to-the-
minute performance information, including portfolio exposure,
is made readily available. Furthermore, unlike some investment
programs, we do not have a minimum commitment period.
Although we strongly emphasize that investors view our product
as a long-term investment, they can choose to close the account
at any time. Upon notice to Meyer Capital Management, Inc., full
access to funds can generally be made available within a 24-hour
period. (For those who invest in the MGS II fund, additions can be
made monthly and withdrawals quarterly.)
Make us your choice
Meyer Capital Management, Inc.
303 East Main Street
Barrington, IL 60010
Futures Accounting & Compliance
Tressler, Soderstrom, Maloney & Priess
Commodity Trading Advisor (CTA)
Commodity Pool Operator (CPO)
Introducing Broker (IB)
Memberships / Affiliations
National Futures Association
Managed Funds Association
Futures Industry Association
An investment in any fund or program offered by Meyer Capital Management, Inc.
can only be made pursuant to a qualifying private offering memorandum
or CFTC disclosure document, the delivery of which has been authorized by
Meyer Capital Management, Inc.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
FUTURES TRADING IS SPECULATIVE, INVOLVES SUBSTANTIAL RISK, AND IS NOT
SUITABLE FOR ALL INVESTORS.