Financial commentator and Cambria Investment Management co-founder Meb Faber recently highlighted a significant resurgence in managed futures, noting a "monster year" for the strategies in 2026. Faber specifically pointed to a strategy that, after being the firm's "worst performing" in the prior year, has dramatically reversed course to become its "best performer" in 2026. This turnaround emphasizes the often-cyclical nature of systematic investing and the critical role of investor discipline.
In a social media post, Faber directly challenged investors, asking, > "Did you re-up or run away during the drawdown?" This question underscores the behavioral challenges inherent in adhering to investment strategies during periods of underperformance. Managed futures, typically implemented by Commodity Trading Advisors (CTAs), employ systematic trend-following approaches across a diverse range of global asset classes, including commodities, currencies, equities, and fixed income.
Cambria Investment Management, co-founded by Faber, is known for its systematic, quantitative investment philosophy, which prioritizes evidence-based investing and global asset allocation. The firm advocates for diversification and a long-term approach, stressing the importance of maintaining a predefined strategy even through difficult market conditions. This disciplined stance aims to mitigate emotional biases that often lead investors to abandon strategies during drawdowns.
Historically, managed futures strategies have provided valuable diversification and "crisis alpha," often performing well when traditional assets struggle. While these strategies can experience periods of underperformance, particularly in choppy or trendless markets, research, including Faber's "The Patience Premium" (2025), suggests they tend to deliver stronger-than-average returns following such drawdowns. This "patience premium" rewards investors who remain committed, allowing the strategies to capitalize on emerging sustained trends.
