Is the managed futures industry a scam? Bloomberg would surely have you think so with its sensationalized headline “How Investors Lose 89 Percent of Gains from Futures Funds.”
But who exactly is Bloomberg talking about? Is that all ‘futures funds’? Is that the entire Managed Futures Industry? Bloomberg would sure have you believe so via its numerous implications and insinuations â€“ but the fact of the matter is they reviewed just 63 funds, out of 6000 total registered commodity pools.
Now, we couldn’t agree more that the bulk of the managed futures funds they reviewed (the ones sold by Wall Street banks and broker/dealer networks) are overburdened with additional fees and bad for investors. In fact â€“ we would argue that most funds sold by broker/dealer networks are overburdened with fees and bad for investors.
But their highly selective “research” is an insult to the many hard working, fair folks in the managed futures industry who take serious offense to the implication that ‘Managed Futures’ is the “single biggest rip-off on Wall Street,” as a copy cat article by Gawker stated.