I am to begin training shortly with a wirehouse. I am researching different ideas on how to market once I start production. Does anyone successfully market managed futures? From what I understand the commission on these is very strong, and many advisors don't always put these in a clients portfolios. Based on poor stock market returns the last decade and the strong performance of many managed futures funds, it would seem there would be a strong case to lead with these as a small percentage of a clients portfolio combined with the good payout. Any feedback is appreciated...
Prediction.....If you lead with managed futures, you will fail. Seriously IMO it is a bad idea. I haven't seen any of them that the performance warrants the fees charged.
Yes, managed futures are expensive for the client and can be --- not always, but very often --- volatile as hell. Better to get commodity exposure via ETFs. We have done lots of stories on various ETFs, including gold, "soft" commodities (wheat, sugar and etc.) as well as oil and the obvious ones. Indeed, ETFs (and ETNs) are a great, cheap way to get exposure to commodities--- and some you don't have to worry about the problem with futures (i.e. contango).
The best way to play gold, gold miners or ETF of the bullion? Better to go SPDR Gold Shares Trust (NYSE Arca: GLD). See our story from October. http://bit.ly/cMhGPC. For more, simply do a search on our website of our long-time contributing editor, Brad Zigler. He used to work inside the belly of the beast (Barclays) and knows his stuff.
[quote=David, RR editor]
Yes, managed futures are expensive for the client and can be --- not always, but very often --- volatile as hell. [/quote]
I would look at volatility a little closer. Volatility on an un-leveraged basis - the equity market is king. Commodity funds are tame comparison to equity funds these days.
Managed futures, IMHO, are an elaborate scheme to rip off producers, end users and investors all for the benefit of the Goldman types of the world. I think it would be wise to create rules that only allow folks capable of taking delivery, or having a real business need, when it comes to participation. Price manipulation of oil and food are essentially monetary terrorism. Nothing good comes from this nonsense.
I think it would be wise to create rules that only allow folks capable of taking delivery, or having a real business need, when it comes to participation. Price manipulation of oil and food are essentially monetary terrorism. Nothing good comes from this nonsense.
I am beginning to agree with that sentiment.
Imagine an ETF for milk? How about rice, etc....
It is exactly that kind of tactic that has lead to famine and riot in the past. It's a hoarding mechanism, meant to steal from both producer and end user. Several past food shortages and famines that killed scores of people, turns out there never was a shortage of the food, but instead some outside factor that had created a kink in the supply hose.
It was Enron that really had this down to a science. That firm is gone, but the people aren't. Follow the Enron personell, and you've got evil little scumbags at hedge funds and Goldman Sachs, utilizing the same tactics at the expense of everyone else.
I actually do successfully market managed futures.
My main selling points are very basic: our fund's performance and diversification. When I call on people, they are usually unfamiliar with managed futures, but IF they are investors they are usually curious, which opens the door to a conversation.
99% of contacts will demonstrate an initial hesitation in the form of..."well I don't know, I've gotten pretty beaten up in the market recently". That opens the doors to talking about diversification of a % of their portfolio into managed futures.
Although my experience in equities is only as a retail trader a few years ago, I would dare to say that the current economy gives managed futures marketing a significant boost.