Mon, Nov 24, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: No, Bloomberg, the managed futures industry is not a scam

Wednesday, October 23, 2013

This piece was contributed by Jeff Malec CAIA, CEO, Founding Partner, Attain Capital Management.

Is the managed futures industry a scam? Bloomberg would surely have you think so with its sensationalized headline "How Investors Lose 89 Percent of Gains from Futures Funds". And I guess we should expect an article like this with stocks at all time highs, attacking an asset class that performs as a diversifier and has not gone up in tandem with stocks.

But who exactly is Bloomberg talking about? Is that all 'futures funds’? Is that the entire Managed Futures Industry? Bloomberg would sure have you believe so via its numerous implications and insinuations – but the fact of the matter is they reviewed just 63 funds, out of 6000 total registered commodity pools.

Now, we couldn’t agree more that the bulk of the managed futures funds they reviewed (the ones sold by Wall Street banks and broker/dealer networks) are overburdened with additional fees and bad for investors. In fact – we would argue that most funds sold by broker/dealer networks are overburdened with fees and bad for investors.

But their highly selective "research" is an insult to the many hard working, fair folks in the managed futures industry who take serious offense to the implication that 'Managed......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Regulatory - Stringent rules for hedge funds make the financial system fragile[more]

    From FT.com: …It is one thing to impose a regulatory burden when there is a clear need to do so. Banks are underwritten by taxpayers via deposit insurance as well as the too-big-to-fail safety net; they need to be reined in, and if they shrink as a result, that may be welcome. But it is another thin

  2. Investing - Apple: Hedge funds are crazy about it, Greenlight Capital took stake in Citizens Financial after IPO, Tiger Global added to Hertz, exited Dollar General last quarter, Oberweis sells NQ Mobile stake as Valiant adds shares, Whitney Tilson sticks to losing bet on MagicJack shares, Brigade Capital backs €90m Quinn sale[more]

    Apple: Hedge funds are crazy about it From Techinsider.net: Apple Inc. is still the most popular stocks among hedge funds. According to a recent report by hedge fund tracking site Insider Monkey, more than one out of 5 hedge funds are invested in Apple Inc. At the moment there are

  3. Greenlight Re CEO says hedge fund reinsurance strategy buzz is validating[more]

    From Artemis.bm: The attention being paid to the hedge fund reinsurance business model and the fact that others are now looking to leverage bits of it within their own strategies, is validating for reinsurer Greenlight Capital Re, according to CEO Bart Hedges. There has been an increasing buzz

  4. Legal - Hedge fund manager fights £8m tax tribunal ruling[more]

    From FT.com: A hedge fund manager who may have to repay £8m in tax is trying to overturn a tribunal ruling that found he had attempted to shelter millions in an avoidance scheme. Patrick Degorce, chief investment officer at Theleme Partners, lost a tax tribunal case last year. HM Revenue & Customs c

  5. Europe - Hedge funds face exit tax as Iceland central bank discusses plan[more]

    From Bloomberg.com: Hedge funds and other creditors with claims against Iceland’s failed banks face an exit tax as the island looks for ways to unwind capital controls without hurting the economy. The government targets having a plan it can present by year-end that would map out how Iceland will sca