Managed Futures Funds – 58 Years In, Customers Still Have No Yachts
Value Walk posted this above article regarding managed futures. Another nail on the coffin of a so called dead strategy?
As much as past performance is not indicative of future performance..and the last couple of years have been one of the toughest…I get more and more encouraged by these types of articles. I would add that they are not completely accurate.
There are a select group of commodity trading advisors who have been able to compound money. All one has to do is look at the IASG or Altegris data bases. There are some unique and rare commodity trading advisors who have provided their customers Yachts…if those customers were able to withstand the continuous stream of losses and draw downs over the long years. There was a Marhedge article which I refer to in which one investor who allocated to Hawksbill turned $300,000 into more than $18,000,000 in 2003 and if he continued to hold that value would be approx $30,000,000.
However want to point out 2 major points. Hawksbill has gone through VERY deep draw downs at points such as almost 60% and long durations of times he has not made money. More so Hawksbill is not representative of every commodity trading advisor. He is unique! The investor is unique by having immense patience and discipline. There are some unique CTAs that have been around for decades. I have had the personal benefit of investing with them and compounding money. However it is never easy…especially the current environment. However as my mentor has said…he has seen these times repeat many times.
Past performance is not indicative of future performance