I had a strange dream last night. I dreamt that I was a fundmanager and I tried to outperform the market. If I am correct, half of the hedgefunds underperform the S&P. I didn't want to make huge gains, I only wanted to make a few % more, than the S&P index by the end of the year. Since I was also lazy in my dream, I didn't want to do too much work or research or trades. That's how my dream went: 1. I had 1 million dollars in my hedgefund. I put 90% of it in a CD that gives 4.5%, thus I was guaranteed 4% return on my 1 million. 2. The rest of the money I put in a future brokeraccount and I bought 16 ES futures at the very first day of the year. 3. For the rest of the year, I didn't do anything, except I had to roll over the futures 3 times, at expiration. 4. By the end of the year, my hedgefund performed exactly like the S&P plus I had 4% extra from the CD. Thus I outperformed the market by 4% moving my money only 5 times. Now that was just a dream. More astute readers of ET might notice that there was a slight problem with the plan, namely that index futures depreciate by time compared to the index. The rate of depreciation is about 3 ES points per month. Mind you, if you let your ES futures lose 36 points a year, at the current level of S&P that is still only 3%, thus you still have a built in 1 % extra gain, compared to the S&P. But if you want to stick to the S&P +4% profittarget, you only have to do is to time the market 1-2 times a year and you will get your needed 36 ES points. If you don't know how to do that, PM me and I might dream it up for you. So again, the plan in short for fundmanagers: 1. Put 90% of AUM into CDs, yielding at least 4.5% 2. Buy 16 times AUM (in millions) number of ES contracts. 3. At expiration, keep rolling over to the next futures. 4. At year's end send me a card for Christmas.... After ten years, depending on the market conditions, your fund might not going to make lots of money, but you will be among the I guess less than 10% of the fundmanagers, who outperformed the market 10 years in a row.