Expert: Bruce C. Kramer - 3/11/2005

Question
Mr. Kramer,

I'm trying to find a managed futues program to diversify my portfolio.  I don't feel comfortable investing more than 10% (approx $50K) and I know that limits my options.  To limit my risk I'd like a diversified program (grains, meats, metals, currencies, index, interest rates, energy . . . ).  I'm also looking for an established firm and tenured manager with average to low fees.

Can you reccommend a manager or other resources? Any advice would be appreciated.

Thanks,
John Cushenbery

Answer
Hi John:

Futures Magazine has listings of most of the programs along with historical returns, contacts, etc. You can also use any search engine to find info.

I can't personally recommend any one firm as I have never used one. The programs run by Paul Tudor Jones and John Henry are well known but I don't know what their minimums are.

The fees are generally 20% of profits and 1%-3% administrative.

Most funds blindly use a trend following approach for all markets, hoping if they can catch a trend in a couple it will make up for the losses in the rest. This is why I'm not a proponent of the industry.

Good luck and let me know if I can be of further help.

Bruce C. Kramer, Managing Partner
BARKI, LLC
http://www.simultimeonline.com
SimulTime@carolina.rr.com