I have had a habit of tracking CTA performance, and new CTAs in particular. I have noticed a few problems with the managed futures industry: (This is based only on my informal observation, I have not conducted a study.) 1. Money floods in just before performance tanks and losses rule. This is true for individual CTAs as well as CTA style types and even CTAs in general. I believe this effect is so significant that many funds with good long term paper records actually lose money for investors. 2. A Small funds look great. It attracts attention, assets balloon, and performance tanks. It is almost like the early performance is a "bate and switch" scheme to set up a large loss for investors. 3. The notion that managed futures are a good form of diversification is hopelessly clouded by survivorship bias. So the question is: how to overcome this pattern in ones own ventures as a CTA. Here are my ideas: 1. Take investors only to the extent required. Plan to grow your fund primarily through returns and results. 2. Do not chase random investors. Investors need to be screened just as they screen managers. To the extent possible avoid "the managed futures industry". The industry seems to thrive by larding up managers with insane fees, pumping unstable investors into CTA programs, and in general costing investors untold millions of dollars. Any other ideas??