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Managed Futures
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An Alternative Investment For Mutual Fund Investors
by Noble
DraKoln, futures analyst
Many investors are not familiar
with the various ways to go about
participating in futures. Among the wealthy, along with
investors in
the know, there is a simple but slightly expensive way to invest
in
futures, managed accounts.
These managed accounts are known as Managed Futures. A CTA
(Commodity Trading Advisor) will typically devise a strategy to
trade
the futures markets. In this way he is similar to a fund
manager. A
CTA will then raise capital from various institutions and
private
investors. The minimum investment can range from $50,000 to
$250,000.
Once that is accomplished they
will then use their strategy to
increase the money under management. In return they will charge
a
management fee of 1-2% and a 20% profit sharing incentive
fee.
At the close of last year the
top five CTA's with more than $10
million under management were up 13.29%, 61.37%, 36.56%,
56.80%,
69.21%.
The stock market doesn't
compare. Over the last three years the
Nasdaq had a 74 percent drop, which cost shareholders $4.8
trillion
in paper wealth through last Friday. U.S. stocks have fallen
40-plus-
percent as a whole, which Wilshire Associates calculates has
cost $7
trillion.
Sources of CTA performance
information
· Barclay Trading Group
515.472.3456
· Managed Account Reports
212.213.6202
· Stark Research Inc.
619.459.0818
About the Author
Noble DraKoln is the author of the best-selling books Futures
For
Small Speculators and Single Stock Futures For Small
Speculators,
available on http://www.amazon.com. He has been a futures investor,
broker, and analyst for almost 11 years. You can subscribe to
his
free monthly newsletter at http://www.liverpoolgroup.com.
