Futures Funds Flounder - Futures Funds Flounder - WSJ.com

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See a sample reprint in PDF format. Order a reprint of this article now WEEKEND INVESTOR SEPTEMBER 4, 2010 Dow Jones Reprints: This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, use the Order Reprints tool at the bottom of any article or visit www.djreprints.com World U.S. New York Business Markets Tech Personal Finance Opinion Careers Real Estate Small Business By ELEANOR LAISE A slew of new "managed futures" mutual funds purport to offer small investors a sophisticated strategy that held up well during the financial crisis. But the approach, previously limited mostly to institutions and wealthy individuals, has proved an awkward fit for the mom-and-pop mutual-fund world. The new funds' complex structure, which can leave investors in the dark about fees and portfolio holdings, already has prompted regulators to push for stricter oversight of the products. And so far, performance has been lackluster. Managed-futures funds aim to profit from both positive and negative trends in commodities, currencies, bonds and other markets. The funds trade futures contracts tied to these investments, sometimes taking "short" positions to bet on price declines. Some firms managing the new products, such as AQR Capital Management LLC and AlphaSimplex Group LLC, have extensive experience running both hedge funds and mutual funds. Others, like Equinox Fund Management LLC and Altegris Advisors, are making their first forays into the mutual-fund world. Investors looking to diversify away from traditional stocks and bonds have flocked to "long-short" mutual funds such as managed-futures funds, adding $10.2 billion to the category in the first seven months of this year,
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Futures Funds Flounder - Futures Funds Flounder - WSJ.com

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