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I've never looked deeply into managed futures, however Barron's
publishes rankings and contact info. It's a murky area, in many cases
the customer must meet a rather stiff asset test, and some of the system
traders can run huge drawdowns. In many cases, the manager is required
to maintain records which are subject to regulator audit. Ultimately, it
is up the customer to do the research and most importantly determine
what leverage and risk parameters the manager is using. I've been told
that the major stock brokerage firms charge excessive futures
commissions - often $100-$200 per contract so this may not be the place
to start. A good full service broker will handle everything for $50 (or
less) per contract all inclusive of the various fees. Commissions are
quoted as "round turn" which means both sides of the transaction.
One spot worth a look is http://www.chartingyourfutures.com. Jay does
some brokerage and runs managed accounts. Everything he does is laid out
on his web pages. He appears to have been around a long time and if
nothing else, his web pages and commentary provide a wealth of useful
info and nuggets regarding commodity futures. If it looks interesting,
give him a phone call - he loves to talk. IN NO WAY IS THIS A
RECOMMENDATION TO DO ANYTHING OTHER THAN LEARN FROM HIS WEB PAGES!!!!
Earl
----- Original Message -----
From: <Jpilleafe@xxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Sunday, February 06, 2000 12:56 PM
Subject: [RT] Re: FUTR: Effects of Low Prices and Burgeoning Hedge
FundAssets on ...
> In a message dated 2/6/00 10:11:39 AM Pacific Standard Time,
> brente@xxxxxxxxxxxx writes:
>
> << I'm sure that there must be other commodity based funds out there
> with all the thousands to chose from. >>
>
> You would think so wouldn't you.....but the
> fact is that there there aren't ANY mutual funds
> which are indexed to the CRB,...or simply commodities.
> Bear Stearns or a brokerage outfit had a fund coming that was
> supposed to do this,..but it had an exhorbitant load (+4%) or
> some nonsense,..and was full of fees. This was two years ago.
> What came of the fund I have no idea. I recently looked for a
commodity
> based mutual fund and came up with nothing.
>
> There are plenty of Natural Resource type funds,..which own
> SHARES in companies that are commodity sensitive,..but
> these stocks will suffer along with the market if equities take a
dive.
> Rydex has their Basic Materials fund,..again,...shares in companies
that
> are economically sensitive. (RYBIX) Notice how paper and
forest,..etc and
> other basic materials companies are doing poorly here,...likely a sign
> that we are at the tail end of this economic expansion.
>
> I ended up using the March CRB contract,...figuring one point equals
$500,...
> with the CRB around 210,..that gives you exposure to $105,000 in
commodities
> per contract. I found the CRB contract to be the best alternative
> available.
>
> Anyone know of other (mutual fund type) vehicles?
>
> Jim
>
>
>
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