Series 31 case studies
Series 31 · Put your knowledge to work in context.
The Futures Managed Funds Examination, commonly called the Series 31, is a qualification exam for individuals whose work involves managed futures programs and commodity pools - the sales, solicitation, and supervisory side of the futures fund business rather than hands-on order entry. Candidates typically encounter it after entering a firm's registration pipeline, and it is generally pursued alongside, not instead of, a broader securities or futures principal/representative qualification. The Series 31 case studies are 5 cases and about 4,464 words.
1Cutting Beta Inside a Hard Derivatives Cap
A registered commodity trading advisor manages a 12,000,000 equity separate account whose current beta to the S&P 500 is 1.15. The client's investment policy statement limits aggregate derivatives notional to 10% of account value at all times, measured at trade date.
708 words, about 4 min2Collar Construction When a Lender and a Board Both Say No
A crude oil producer holds 120,000 barrels of December-deliverable inventory. Its lender covenant requires that at least 70% of that volume be hedged to a floor of 72.00 per barrel or better at all times.
847 words, about 4 min3High-Water Mark Arithmetic for a New Pool
On January 1 a commodity pool operator launches a pool with 5,000,000 from 18 limited partners. The CPO charges a 2% annual management fee, billed at each quarter-end at 0.5% of beginning-of-quarter NAV, and a 20% quarterly incentive fee on net new profits, subject to a high-water mark.
925 words, about 5 min4A Marketing Brochure That Fails Rule 4.41 in Four Places
A registered commodity trading advisor has drafted a 10-page brochure for a new 'Diversified Macro Program' and plans to email it to 4,000 prospects and post it on its website. Page 3 shows a 2014–2019 computer simulation of the trading rules headlined 'Annualized return 22%, Sharpe 1.9'.
1,024 words, about 5 min5Changing the Program and Re-Using the Old Track Record
A CTA has traded its 'Financials Program' for three years across 14 interest-rate and currency futures markets at roughly 2x leverage. Its disclosure document shows 11.0% annualized and a 9% maximum drawdown, computed as a composite of its six client accounts.
960 words, about 5 min