If you read our blog… ever… you know we don’t like managed futures mutual funds. To be honest, we sort of feel like we’ve been lashing out at the space a little too much lately, but they make it so easy. When we saw there was a presentation on the “mutualization” of hedge funds at SALT 2012, there was no way we were going to miss it.

What was interesting in listening to the presentations by Ramius Trading Strategies and WisdomTree,  we heard more and more about how well-suited managed futures was to the space. Obviously, we disagree, but what killed us was that, in speaking to an institutional crowd, they described the benefits of the managed futures mutual funds as being liquidity. What’s cute about that play is that, at the end of the day, these institutional investors can do managed accounts – which takes those performance-eating fees out of the equation – with the same beautiful daily transparency and liquidity.

When pressed on some of the data (like tracking error statistics), questions were deflected, while the panelists framed the conversation as too sophisticated to get into. Really? If anything, this is the crowd that should be able to get it.

We’re still waiting to hear a solid defense of the managed futures mutual fund space. If you’re qualified to invest in an LP or managed account, we cannot think of a single reason why you would bother even considering a managed futures mutual fund. We’d hoped we’d at least hear an interesting take here. So far, it’s been pretty disappointing in that respect.