the Managed Futures mirage

If you see:

https://www.barclayhedge.com/managerscorner/perf_ranks/cta/Stock_Index.html

You will see CTAs report their performances based on “composite return” of the entire program (per program) managed by them. It is not per individual client account or "average” of client accounts.

I believe NFA has some rules on how to calculate "composite return”.

 

Thanks ...Jim


NiN

 

http://www.zulutrade.com and http://rentasignal.com/ are two of many ? alternates
to 'managed funds'. not sure what these companies are known as - signal service ?
they are agencies where individual traders are making some form of payment to
obtain the trades info for manual entry or, trades are made automatically through
the user's account
some 'signalers' have impressive results for a low monthly fee

the above are for fx trading but aren't there similar for the indexes etc ?

 

Chicago,

Thanks for following up. Just curious, in your experience what level of commission revenue (what range) will get a broker interested in selling a program? Lets say it is a 100K account.

Thanks all for your contributions.

 

I have to say, I think this is an interesting discussion.

I'm also an "emerging" manager, with 10 months of track record and about $2.5mm AUM (all my own money). Last month, I nearly wet myself when I had a 3-sigma move go against me in one of my core holdings, and took me down 13% at the time. I thought seriously about closing the fund down.

One of my outside investors actually set me straight. He told me that a 10-20% draw-down, while never pleasant, is just a matter of life. He still wanted to invest more funds for July.

I ultimately ended the month "just" down 6.7%. It's still a painful number, but I think the experience has certainly made me stronger. My own emotional reaction certainly helps me understand how a "novice" outside investor might react after seeing a similar draw-down.

 

Heech - are you automated or is everything descritionary?

Do you "buy" research or you run your research, fundamental or TA?

Thanks.

 

Beside commission, what percent of the advisory fee a broker shares?

 

I'm entirely automated (with some discretion on if/when what strategies are enabled).

 

Since I'm currently advising + in talks about managing money, i'll throw in my 2 cents. Work with some good banks/ brokers/ money raising firms. And more importantly; don't let individuals invest more than 5% of their liquid net worth in your fund.

 

Chuck,

Thank you for your two cents. Would you care to elaborate on what "good" is to you? What in particular are you looking for?