Jan 6, 2016

Hedged mutual funds built around managed futures have been appearing in many investors retirement accounts in recent years, but are they panning out?
Fees can be extremely high and many of the funds have lost 20% to 30% with only a few winners.
The Wall Street Journal reports that these funds are suddenly closing down at a rapid pace. You may want to check your portfolio to see if you own some of these pricey dogs.

Managed futures accounts, smart beta, and hedge fund clones had a rough time of it in 2015.More “liquid alternative” mutual funds closed in 2015 than in any year on record according to Morningstar Inc. Inflows dwindled and performance weakened.

The results show that enthusiasm is fading for what had emerged in recent years as one of the hottest products in asset management—funds that combine hedge-fund strategies like shorting stock with the daily liquidity of mutual funds.

In all, 31 liquid-alternative funds shut their doors in 2015. Steve and Sinclair dig into the subject with some key statistics.

In the Q & A, CFP® and Certified Investment Management Specialist® Murray Titterington with IQ Wealth joins the A-Team to report on the alarming trend of overleveraging by U.S. companies. Many are borrowing money to pay their dividends. Can it end well? Hear the facts. Steve gives some important advice to conservative and moderate retirement investors in segments 3 and 4.