Lido Isle Advisors Creates New Managed Futures Ranking Formula

June 14, 2012 - PRLog -- Lido Isle Advisors, an independent,  privately-owned Managed Futures investment firm, has created a new Managed Futures ranking formula to assist investors in the evaluation of Managed Futures investments. Before the creation of this formula, investors have had to rely on a more fragmented view of Managed Futures programs.

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): CAROR, Max. Drawdown, and Monthly Sharpe Ratio. The Rotman Ratio results in one numerical output to make the identification of top-ranked programs based off this historical data very simple.

The Rotman Ratio formula is as follows: (CAROR/MaxDD)*Monthly Sharpe Ratio

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-minded, individual investor with $1 million or more in investable assets.

For those interested in learning more about working with Lido Isle Advisors, please visit http://www.lidoisleadvisors.com or call 949-461-1137.