FACEBOOK! IPO OF THE CENTURY! THE AMERICAN DREAM COME TO LIFE! BUY!

Yeah, right. Facebook fever may have been in full swing on Friday and in the weeks leading up to the IPO, but one look at the stock today may have initial investors cringing.

Lessons learned from this plummet?

1. Don’t chase performance. Whether you’re looking at stocks or managed futures program, trying to chase the hype is just a generally bad idea, because it’s going to cut the other way – it’s just a matter of when.

2. Stocks are still riskier than you think. Here you had what so many people thought was a slam dunk, but on its second day of trading, the stock is down 10%. If you’re going by the WSJ Wealth-o-Meter, that means Mr. Zuckerberg himself is down around $2 billion. Ouch.

3. The stock market may be in more trouble than you want to admit. Josh Brown had a good interview with CNBC on the subject; when the most exciting IPO in years falls on its face like this, it doesn’t bode well for the rest of the plain vanilla market. We’re not nose-diving (yet), but the time to diversify may be short.

Now, to be fair, Mr. Zuckerberg is still sitting on over $17 billion in Facebook stock. If he allocated $10mm per manager in the CTA space, he’d be invested in 1,700 CTAs. That’s one massive portfolio. If he allocated to all 355 programs in our scrubbed database with that $17 billion, he’d have to allocate $47,887,323.94 to each manager. Now, we’re not silly enough to say he should invest the entire $17 billion into managed futures, but, Mr. Zuckerberg, we’ve got a few ideas for a robust $2 billion portfolio. Give us a call?