One question: If anyone knows, if you are licensed as a 65, how then, would you manage a 401k or an IRA and they pull fees off of that? Would the account holder be penalized?
I just saw a disclosure doc where a CTA formed an incubator fund and ran it with his own assets for the first year. In year 2 his own assets made up more than 50% of the fund. Year 3 and later clients assets made up the majority of the fund. He had to leave off the fund's track record for year 1 because it is categorized as proprietary performance. He displayed year 2's performance but had to disclose that fact that it is still "proprietary" since his assets made up more than 50% of the fund. Year 3 and on is displayed as discretionary client account performance. No doubt the NFA dictated the presentation of the performance capsule. In my opinion this makes an incubator fund a worthless thing because it is nothing more than another proprietary account.
Indeed. 87% return and 10% volatility = 8.7 in Sharpe ratio, virtually impossible with a fundamental strategy!
I also thought it is a scam but nonetheless the discussion that happened in this thread was quite informative. So, thanks to all the participants and especially to OP to launch such a well-thought out scam
Returns are 86% in 2011, 155% in 2012, with max drawdown of 8 to 10%. Year to date 2013 has been amazing, at +53%. I am particularly pleased with this given this was achieved only about 15% of profits coming from my non scaleable strategy, much less than prior years. Furthermore returns were achieved with less concentrated bets than prior years. I would say that I am quite surprised how well things are going, and that these returns are almost certain to be unsustainable. I have posted a screenshot from IB's portfolio analyst before. I don't mind defending these numbers, I am quite proud of them. I don't really get a chance to brag about my returns other than to my mom. Bragging here anonymously is one of the few opportunities I get.
Let me compete with you with my long/short strategy Feb: 7.38% March: 10.84% April: -5.11% Based on 300K funds Well, I have to say that April max drawdown is at about 10%. The first 2 weeks is really bad, since when market go down, long drops heavily, and short is rising, all contributed to a 10% loss. Long/short is not immune. As see, things sometimes against you though hedged.