There’s this hedge fund called “SuperFund”, at first glance this seems to be a managed futures fund. This is basically a fund that invests in futures, ie. corn, oil, frozen concentrated orange juice, etc. and rolls them into the next period on a regular basis. This allows the investors access to the commodities market without the hassle of trying to buy and sell futures themselves. So as a “hedge fund” it’s not exactly typical. There are many managed futures funds out there. No need to go to eastern europe or even to another country. We have tons of them and many do take a minimal investment.

This is a solid way to diversify a portfolio (not this specific one, but this type in general). As with any investment, you need to know what you are doing, but investing in commodities is great for diversification.

Bill Gates commented after reading the Intelligent Investor by Ben Graham – Buffet’s bible – “It’s a simple book about bonds and compound interest. Not complicated at all” Well, it’s not complicated along the lines that Texas Hold’em isn’t complicated.

 Buffet is a big proponent of indexing for the average investor. I know you want to do otherwise, but for most people, this is the proper solution to their market exposure.

Here’s how it works. Advisers get paid in basically one of three ways. 1, hourly for doing a plan or other work that ends when the work stops. 2, commission on selling mutual funds, insurance products, annuities, etc. 3, AUM – Assets Under Management fee, typically 1% of the account balance per year.