Managed Futures Funds – 58 Years In, Customers Still Have No Yachts

Here’s a story in the Washington Post by David Evans that illustrates how Wall Street’s cutthroat fee practices have remained unchanged over the decades, and worse, that its customers remain as gullible as before.

A managed futures fund, Morgan Stanley Smith Barney Spectrum Technical LP, raised $797M from over 30,000 investors between 2002 and 2012, and generated trading profits of $490.3M in that period. But ironically, none of that flowed into the pockets of the fund’s trusting investors – instead they lost $8.3M.