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Managed futures
- Thread starter alex104
- Start date
Managed futures are separately managed accounts that are in the name of the investor but traded by you (typically as a CTA). The investor likely has liability of losses greater than the account equity, but has a lot less fraud risk.
A hedge fund is pooled capital and losses are limited to the amount of the investment (for the investor). There is a lot more operational risks, as well as administrative burden on the manager.
A CTA can be set-up relatively cheap and easy (do a search, there are many threads on this). A hedge fund tends to cost more...
A hedge fund is pooled capital and losses are limited to the amount of the investment (for the investor). There is a lot more operational risks, as well as administrative burden on the manager.
A CTA can be set-up relatively cheap and easy (do a search, there are many threads on this). A hedge fund tends to cost more...
Not an expert in managed futures, but this is what I have found on Google. It has got the answer for the question you asked and all the basics about managed futures.
http://www.pfgfunds.com/faq.asp
http://www.pfgfunds.com/faq.asp
I don't want to see it..but it's inevitable..
stock commissions DOWN
futures commissions DOWN
managed equity funds fees DOWN
Next will be the futures guys...
Why?
Have you seen the results of some of these CTA's?
Garbage..
Imagine managing 4 billion and you're annual return is -3% over 5 years...
stock commissions DOWN
futures commissions DOWN
managed equity funds fees DOWN
Next will be the futures guys...
Why?
Have you seen the results of some of these CTA's?
Garbage..
Imagine managing 4 billion and you're annual return is -3% over 5 years...
The norm is still 2/20, but often times those are negotiable on managed accounts.
If you are Jim Simmons, and have his track record, you can pretty much charge anything you want.
There seems to be a considerable number of clueless people that look at CTA returns and call them crap because they are low. You really need to look at some other metrics to compare apples to apples. You need to look at margin/equity levels, drawdowns and vol to get a more accurate view. Most managed futures accounts are notionally funded....
Atticus, how's the heat treating you over the hill?
If you are Jim Simmons, and have his track record, you can pretty much charge anything you want.
There seems to be a considerable number of clueless people that look at CTA returns and call them crap because they are low. You really need to look at some other metrics to compare apples to apples. You need to look at margin/equity levels, drawdowns and vol to get a more accurate view. Most managed futures accounts are notionally funded....
Atticus, how's the heat treating you over the hill?