# Hedge fund strategy may beat bonds for investors

> A managed futures approach historically available only to hedge funds could outperform traditional bonds in volatile markets, according to fund managers debating the future of 60/40 portfolios.
- Title: Hedge fund strategy may beat bonds for investors · CNBC
- Summary: A managed futures approach historically available only to hedge funds could outperform traditional bonds in volatile markets, according to fund managers…
- Keywords: managed futures, etfs, bonds, portfolio allocation, hedge funds, andrew beer, nate geraci, dbmf, 60/40 portfolios, business, finance, Hedge
- Source: CNBC — https://cnbc.com/2026/10/17/dead-money-for-a-decade-hedge-fund-approach-that-may-trump-bonds.html
- Author: Julian Torres
- Published: 2026-10-17T15:00:01+00:00
- Read time: 1 min
- Topics: managed futures, etfs, bonds, portfolio allocation, hedge funds, andrew beer, nate geraci, dbmf, 60/40 portfolios, business, finance
## Bonds have underperformed for years
Andrew Beer, co-founder of DBi, told CNBC that bonds have been dead money for the entire decade. He argues investors should reconsider traditional 60/40 portfolio allocations.

> [Bonds have] been dead money for the entire decade
## Managed futures offer an alternative
Beer suggests managed futures, a hedge fund strategy, could counterbalance stocks better than bonds during volatility. These ETFs can go long and short across global markets to position early against turbulent events.

> You want something that has low correlation to both stocks and bonds, and something that will do well in crises
## Beer's ETF shows strong performance
The iMGP DBi Managed Futures Strategy ETF, which Beer helps manage, replicates leading managed futures hedge funds in a low-cost, liquid format. It is up almost nineteen percent so far this year.
## Experts warn against replacing bonds
Nate Geraci, president of NovaDius Wealth Management, argues managed futures should fit within a diversified portfolio that includes stocks and bonds, not replace bonds entirely. Investors must understand how alternatives interact with existing holdings.

> [Alternatives] fit in the sleeve of a well-diversified portfolio that includes stocks and bonds
## Balance requires long-term perspective
Geraci notes managed futures can outperform during volatile markets but may underperform in other periods. He emphasizes diversification and letting alternative strategies work over the long term.

> You have to let that work out over the long-term
## Key takeaway

Managed futures ETFs offer an alternative to bonds for portfolio diversification, though experts debate whether they should replace rather than complement fixed income allocations.