MutualHedge Frontier Legends
Managed futures programs — where advisers are trusted to manage money via futures contracts — have been around for decades. Because the investments are in broad categories like commodities and currencies, the returns tend to not be correlated with stocks.
While managed futures long have been a tool for professional traders and institutions, retail investors can get exposure to this strategy via funds such as the MutualHedge Frontier Legends Fund (MUTF:MHFAX), which parcels money out to about a dozen funds.
The fund is young — it only got its start in December 2011 — and the 2.7% average annual return since then is certainly lackluster. However, the goal for funds like this isn’t necessarily screaming returns, but low risk and loss mitigation. That said, returns are heavily weighed down by a high 2.38% expense ratio, as well as a negotiable 5.75% sales charge for A shares. Minimum investment is $2,500.