Managed futures

[atticus]

Quote from Arb Under Par:

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?

It's not as bad as the valley, thanks. we hit 92 this week when Reno was 114. Cooler temps coming with this front. Don't forget to lob a golf ball at Larry Kudlow.

 

[Arb Under Par]

Quote from atticus:

It's not as bad as the valley, thanks. we hit 92 this week when Reno was 114. Cooler temps coming with this front. Don't forget to lob a golf ball at Larry Kudlow.

They said Incline hit 104 on the 5th. Didn't seem that bad after a dozen coors lights on the boat....

Is Larry playing the celeb tourney at Edgewood?

 

[alex104]

Thanks for valuable information. What are typical management fees charged by CTAs who run managed futures ?

 

[alex104]

If I manage 5 million $ and my average anual rate of return is 500%, how much you think I can charge ?

 

[ASusilovic]

Quote from PohPoh:

6% Management
44% Incentive...

Sorry Channeling Simmonds here..

Typical is 2% and 20%...
But kiss that goodbye..

Hello 1 and 10...

1 / 10 ??? If you want to pay your barber this way, go ahead !!

 

[ASusilovic]

Quote from alex104:

If I manage 5 million $ and my average anual rate of return is 500%, how much you think I can charge ?

If your return "would be" 500 % you would not manage anybodies money anymore !!

 

[alex104]

It's just 5 million $. 500% per year is nothing unusual

 

[bootize]

Hopefully this isn't too dumb of a question, but I was wondering...

I understand the difference between a "Hedge Fund" and "Managed Futures Accounts", but if someone took the same concept of "managing futures accounts" and instead "managed STOCK accounts", would that then be the same? Or are there a whole set of new rules that would come into play?

Thanks!

 

[rcanfiel]

Quote from alex104:

It's just 5 million $. 500% per year is nothing unusual

In what alternate reality is this not unusual??? Few CTAs get much above 20-50% and stay there.

 

[BJL]

Quote from alex104:

It's just 5 million $. 500% per year is nothing unusual

to make your fund blend in with the rest you need to charge about 10%/95% i think so you'll average 24% per annum after fees