<a charity fund>
I don't know. It probably would depend on the focus of the account. I managed to quadruple or quintuple my sister's money over a few years with very little trading, perhaps only 5 or 6 a year, purely in stocks. But it's focus is purely ultra conservative, with few high risk issues due to her age....early 60s.
Even now, I have moved a large portion of her funds into high yield stocks, stocks paying 8 or 9 percent on average.
Trading a conservative Futures charity fund sounds like a contradiction, but I imagine it could be done. Stocks just aren't my strong suit. It's a lot of work to manage a stock portfolio well.
Position trading a managed Futures account is something I'm trying to develop. I'm primarily a day trader, which entails greater risk than positioning.
So I would have to say I would be reluctant, given the nature of the probable focus of the charity. It would probably not be wise from the charity's point of view to risk funds in a Futures market, or a least not a sizable portion of Net Assets.
I imagine if a charity had 10 million and wished to risk 100,000 aware that the money could be completely lost then that's one thing. But I doubt any charity manager would risk that.
I know of a company which is headed up by my brother. The prior chairman had a group developed which did pure arb work and they were very happy with it, or at least they were until the market collapsed in 1987. Then they had to axe it. The operation got pounded in the markets, as I recall it was very ugly. What made me think of this was a guy on TV right now, who mentioned the company as his top pick. It just startled me, as it's not a Lucent or an internet stock or anything real "go go", if you know what I mean. That arb group was about as risky a division as they have ever had.
Very few people live forever in this business without having bad stretches. Once in a while traders blow up. |
