I am still shocked no one has stepped up and offered a number of solutions for managed futures packaged as ETFs. I get that CTAs are loathe to give up their 2 and 20 fees, but CTAs (like many hedge strategies) can be distilled into a few rules based systems. While Sperandeo’s indexes (now S&P’s in forms like LSC and WDTI, but also mutual funds and sep accounts, although they have their own problems) have garnered a few billion, I fully expect lower fee entrants to come into the space – I’m just amazed it hasn’t happened yet. Where are the Dunn’s and Henry’s of the world here? Mt. Lucas? Conquest?
I understand why some have not done it (ie don’t need to over $10B like Winton, Transtrend, BlueCrest etc), but if I was a CTA I would launch a “lite” version on the NYSE. I know some don’t want to deal with the SEC but a few simple alternative beta funds (1x-3x) launched at 50bps would raise > $1B in the first year.
Would love to hear from my friends in the CTA world as to why they haven’t hopped on board…
