Aggressive Hedge funds for small investors?

Discussion in 'Professional Trading' started by ChicagoIndiana, Dec 10, 2003.

  1. I'm looking for additional info on any hedge funds that disclose thier annual performance for 5+ yrs, that have averaged aggressive returns.
  2. I found a couple CTA's but would like to know a couple things in plain english.

    Management fee of 2%.... is that 2% of profit or 2% of my account value?

    Incentive fee of 20%.... whats that?

    Round-turns per million is 1700.... what's this mean?

    Margin/Equity is 17%. Does this mean 17% of my account value is for trading and the remaining 83% is there in case of drawdown?

    Thanks very much, feel free to pm me with more info or links that explain details.
  3. 2% management fee means 2% of your account value taken off the top, win, lose or draw. Usually paid monthly or quarterly in advance, pro-rated of course. 20% incentive fee means, the manager keeps 20% of your profits annually. 1700 round turns per million means that the manager averages 1700 futures contracts both buying and selling on average annually for each million dollars invested in the fund (this is an indication of the annual level of commissions paid, which you will absorb). Finally, 17% margin/equity means that 17% of the money is utilized to place as margin against the positions and the rest is held in cash. In my opinion, this figure is pretty high given the amount of leverage allowed in the futures markets. Hope this helps. Neal.
  4. ktm



    I would suggest visiting . Click thru to the CTA section and read a few Disclosure Documents. This will help you understand more about the fee structures and terminology used in the industry. Another site to check out with a comprehensive CTA/CPO list is . Both sites are open to non-accredited investors and serve a useful purpose in learning about alternative investments.
  5. blaster


    check out