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At 10:43 PM -0700 6/26/98, JW wrote:
>I've been interested in this subject myself. I came across this site
>http://www.smartimer.com/ which offers money management using the Rydex
>funds and a program called Smartimer. The fees seem high at 3%/year for all
>the money under management (plus Rydex fees?).
>
>I'd also be interested in any other site pointers that others may have for
>further research.
There are dozens of market timers managing money. The "MoniResearch
Newsletter" (800-615-6664) rates most of them with audited performance
figures. There are actually two categories of such timers. "Classic Market
Timers" who are in and out of the market, and "Dynamic Asset Allocators"
who switch frequently between different assets, (including bear market
funds). Many use traditional mutual funds and some use the new funds
(Rydex, ProFunds, Potomac Funds, etc.), that are designed for timers.
The newsletter has been rating such timers for 15 years and rates probably
a hundred for risk ("Ulcer Index") and returns. Their claim to fame is good
returns with lower risks than buy/hold managers. Most of them invest in
mutual funds (including Rydex) and switch frequently. They have trading
authority over your money which is held by the fund or by a trust company.
They cannot withdraw the funds. They are managing amounts from a few
million to over half a billion dollars. Fees run from about 1.5% to 3% of
assets. Returns after fees run 10% to 40% per year with much
lower-than-market risks. The best programs (highest returns, lowest risks)
are often closed to new investors.
(No connection except as a happy customer.)
Bob Fulks
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