The Rise of Alternative Investments
Investors are increasingly turning to alternative investments such as managed futures,
exchange-traded funds (ETFs), cryptocurrencies, fractional real estate, and social impact
investing. Industry data highlights a significant uptick in these asset classes, with global
alternative investment assets under management reaching $16.8 trillion in 2023, driven
by growing interest in diversification and non-traditional vehicles (Preqin, 2024). This
trend reflects a broader shift toward strategies that balance risk and reward beyond
conventional equities and bonds, particularly among younger investors who may seek
innovative opportunities to build wealth.

The Power of Diversification and Compounding
Diversification remains a cornerstone of investment management. By strategically allocating capital across various asset classes, investors can optimize the risk-return relationship of their overall holdings (Investopedia, 2024). Known as Modern Portfolio Theory (MPT), it demonstrates that combining low correlation investments can reduce portfolio volatility with the goal of increasing return (Forbes, 2025).  MPT includes alternative assets such as commodities, cryptocurrency, and real estate (Investopedia).

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NovoDyn’s Technology-Driven Approach
NovoDyn’s advanced machine learning technology executes trades in your brokerage
account, analyzing market data with precision unattainable by human traders. Our
robotic, mean reversion programs eliminate emotional bias, identifying optimal
trading moments across market ticks. This disciplined, data-driven approach seeks to
maximize performance in various markets.

The Advantages of Managed Futures
Managed futures offer distinct benefits. Profits and losses are taxed at a blended rate of
60% long-term capital gains and 40% short-term capital gains, regardless of holding
period, providing tax efficiency. Your capital remains in your futures account at your
brokerage, with full transparency of each trade. Funds are highly liquid, and you can exit
our services with just 48 hours’ notice. Brokerage commissions and exchange fees are
minimal—typically a few dollars per trade—compared to the value of futures contracts,
such as a single Arabica coffee contract controlling 37,500 pounds or an FX Euro-USD
contract representing €125,000. Our primary programs avoid overnight positions to
reduce exposure to unpredictable aftermarket events.

Important Risk Disclosure
Futures trading involves significant risks and is not suitable for all investors. While we believe our managed futures strategy, powered by advanced technology, may be a effective long-term approach, it may not suit all investors. Futures trading involves
leverage, where a small initial margin controls a larger contract value, amplifying both
gains and losses. A modest market movement can significantly impact deposited funds,
potentially leading to substantial losses. Investors must review our comprehensive Risk
Disclosure Document before participating and consult a financial advisor to determine if
futures trading aligns with their goals. Download our Risk Disclosure Document for full
details.

Getting Started

New to managed futures or curious about our offerings? Start with a small, single-
contract position to evaluate our approach. Our platform offers flexibility, allowing you to
scale your investment up or down with ease. Your funds remain liquid, with the flexibility to adjust or terminate your investment with 48 hours’ notice.

Transparent, Performance-Driven Fees
Our fee structure is straightforward: a monthly management fee of 0.125% (1.5%
annually) of the investment’s nominal value and a 20% incentive fee on profits above a
high-water mark, if any. This aligns our interests with yours, ensuring we prioritize
performance.

Diversify with Confidence
NovoDyn’s managed futures offer a dynamic strategy across diverse market segments,
including commodities, stock indices, US Treasuries, and currency futures. While
equities remain a strong foundation, diversification is central to modern portfolio theory.
Managed futures may provide an uncorrelated asset class that enhances portfolio
resilience and growth potential (Accounting Insights).

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Ready to explore managed futures?

Review our Risk Disclosure Document and consult a financial advisor to see if
NovoDyn’s managed futures are right for you. Call us at 713-974-6200 for a copy of our disclosure document.