This ranking system, driven by the new formula called the Rotman Ratio (named after its creator Jason Rotman who is a partner of Lido Isle Advisors), seeks to provide investors with an empirical and holistic view of Managed Futures managers. Commonly, the most popular metrics investors and advisory firms have used to evaluate CTAs (Commodity Trading Advisors) and other investments are: Compounded Annual Rate of Return (CAROR), maximum historic end-of-month drawdown, and the Sharpe ratio.
Until now, the Sharpe Ratio has been widely accepted as the benchmark multi-metric formula with which to measure an investment's attractiveness. A drawback to the Sharpe Ratio is that it does not directly take into account the maximum historic drawdown of any given investment.
Lido Isle Advisors presents the Rotman Ratio is the next evolution in Managed Futures investment evaluation. The Rotman Ratio seeks to identify investments with the best combination of the following (based on historical, actual performance):
The Rotman Ratio formula is as follows: (CAROR/MaxDD)*
Lido Isle Advisors is proud and honored to lead the way in Managed Futures investment evaluation. The founding partners of Lido Isle Advisors include Anthony Lazzara, a member of the Chicago Mercantile Exchange and the Chicago Board of Trade, and Jason Rotman, a graduate of Princeton University.
Lido Isle Advisors focuses on serving the independent-
For those interested in learning more about working with Lido Isle Advisors, please visit http://www.lidoisleadvisors.com or call 949-461-1137.