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Hedge fund approach that may trump bonds

CNBC • October 17, 2026 • business

Key Points:

Andrew Beer of DBi recommends investors reconsider traditional bond allocations and consider managed futures strategies for a modern twist on the classic 60/40 portfolio.
Managed futures ETFs, which can go long and short across global markets, may offer better downside protection and low correlation to stocks and bonds during volatile periods.
Beer's iMGP DBi Managed Futures Strategy ETF (DBMF) has gained nearly 19% this year, reflecting the potential benefits of this approach amid market uncertainty.
However, experts like Nate Geraci from NovaDius Wealth Management emphasize that bonds still play a vital role in portfolio diversification and caution against completely abandoning fixed income.
Geraci advises investors to understand the long-term nature and potential volatility of alternative strategies like managed futures, highlighting the importance of balanced diversification.

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