Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Managed Futures Funds Gaining Traction Among Advisers
Whenever I see managed futures coming back into fashion, it tells me to tread carefully -- ie that people are getting a bit exuberant and that the next market 'top' may be coming into view. Not that I like managed futures myself - if I want to use futures, I will own and manage them myself!
FWIW I own the TFS fund. I'm just going to hold and as always not reinvest distributions. I've held their Market Neutral fund too now for a while. This was my new money NOT going to Hussman.
I would also very much like to manage my future, but people make it so hard...
Wow! A manager of a managed-futures fund produces a survey which might spark interest in its fund... Yeah, no conflict of interest there...
Altegris' managed-futures fund (EVONX) is rated 5-star by M*, meaning it has among the best historical records in the managed-futures category. But let's take a look at that record. It commenced operating late 2011. So full year returns as follows:
The above returns are net of 1.94% expenses (ouch!)
My reaction? "meh". One "super" year. 4 X "ehh" years. The sequencing/size of the returns almost looks like one might "earn" at one of the gaming tables in Vegas. Makes one wonder what the 3-star rated fund returns look like in this category...
Others may be interested, not I. When considering alternatives, I am looking for something that delivers mostly consistent, positive returns. I'm not looking for outsized returns, but consistent (-positive) ones. If an 'alternative' vehicle can't do that, well, there is fixed-income for ballast & income & equities for growth (with risk). In fact, old, reliable Vanguard Wellesley delivers more consistent, positive returns, thus a "smoother ride", and larger 5-year trlg returns.
p.s. - looks like Gundlach is one of the managers.
Comments
Whenever I see managed futures coming back into fashion, it tells me to tread carefully -- ie that people are getting a bit exuberant and that the next market 'top' may be coming into view. Not that I like managed futures myself - if I want to use futures, I will own and manage them myself!
I would also very much like to manage my future, but people make it so hard...
Altegris' managed-futures fund (EVONX) is rated 5-star by M*, meaning it has among the best historical records in the managed-futures category. But let's take a look at that record. It commenced operating late 2011. So full year returns as follows:
2012...(3.17)
2013....0.67
2014...25.92
2015....3.02
2016...(-0.33) [through 12/16/16]
The above returns are net of 1.94% expenses (ouch!)
My reaction? "meh". One "super" year. 4 X "ehh" years. The sequencing/size of the returns almost looks like one might "earn" at one of the gaming tables in Vegas. Makes one wonder what the 3-star rated fund returns look like in this category...
Others may be interested, not I. When considering alternatives, I am looking for something that delivers mostly consistent, positive returns. I'm not looking for outsized returns, but consistent (-positive) ones. If an 'alternative' vehicle can't do that, well, there is fixed-income for ballast & income & equities for growth (with risk). In fact, old, reliable Vanguard Wellesley delivers more consistent, positive returns, thus a "smoother ride", and larger 5-year trlg returns.
p.s. - looks like Gundlach is one of the managers.