Types of Investment Opportunities

There are three ways in which investors can obtain the advatages of working with a professional manager.  They include individual accounts, private limited partnerships, and public limited partnerships.

A client may establish an individual futures brokerage account in which the CTA has discretion to make all investment decisions.  Usually the CTA will require a minimum account size for full diversification of markets in the investment methodology it is employing. 

Private limited partnerships are a popular way for accredited investors, both individual and institutional, to invest in managed futures.  Usually the minimum investment is less than that required for an individual account and year-end tax reporting is simplified by the filing of a summary K-1 attachment to an investor's tax return.  In addition the limited liability partnership structure provides the investor with protection against loss above the amount invested.

Public limited partnerships offer smaller investors the opportunity to participate with more limited funds. Public funds generally operate the same way as private limited partnerships but are usually subject to higher fees and commissions which are usually built into their cost structure.