Paul Franc

Direxion Offers Long, Short 3x REITs ETFs

Yet another one-comment poster. Another alias there huh, robertB from macro market scams?


On Jul 22 02:51 PM Jon_Kr wrote:

> everythings relative. at 125bps (btw not 95) the exp ratio is higher
> although beta adjusted for 3 index multiplier, more like 42bps.
> as for fixed, I give them credit for not completely burying that.
> also consider costs to maintain and transact in physical houses,
> if you actually are a landlord or want to be one. watch aum, but
> at least costs aren't hidden and wont lose on derivs like others
> do bc they hold tsy+cash. also s/b no yr end tax gain surprises
> to look out for like geared etfs last yr. for me, I don't like upside
> perf cap. paul, if premiums/discounts surprise you and focused on
> one-day performance you didnt do very basic homework and must not
> understand how shillershares differ vs geared etfs. if you even did
> a 30 sec read of the brochureware you would have known this, so your
> line of criticism seems off (caveat emptor).

Direxion Offers Long, Short 3x REITs ETFs

seekingalpha.com/user/...

Check out the above poster's comments above.

That dude is from macro markets for sure.

What do they offer? So far their new macro "shares" are trading at 30% premium and discounts daily. They charge .95% plus 1.2m on a 20m fund which amounts to 6% annually in fees.

Their funds don't track anything. I owned their housing funds. Lost a boat load in those when their price dropped 30% IN A SINGLE DAY. Called and emailed their customer support. Got the same canned response as the poster "RobertB" was saying.

macro shares scammers, HAVE YOU NO SHAME?????

Capture the Residential Real Estate Market with New ETFs

1) Their scam products have hidden fees of $1.2 million PER YEAR. The fee is fixed regardless of how much the treasury they hold yields and is ON TOP OF THEIR 0.95% annual fixed fee. This amounts to 20% annual cost just in fees bleeding out of their funds every day. The market clearly is not interested in their scam and their AUM is at a meager 18M combined. AND they say in their marketing that their funds have no hidden counterparty risk!! What a bunch of lies!

2) They claim on their web site and every possible literature that their fund tracks the underlying index, which it does not. In fact their oil funds tracked nothing (the correlation to front month oil which they claim to track is? 0.35!). Just to give you a perspective YAHOO stock "tracks" oil better than their funds do.

3) HERE'S THE FRAUD: They claim their funds traded 3 million shares a day in 2008. GUESS WHAT? Their funds traded less than 1000 shares every day in 2008 until April, when they suddenly and secretly announced that their funds WILL TERMINATE IN JUNE. Therefore their funds would be killed in 3 months and no one knows it except for some big hedge funds which they notified in secret. At that time their UP OIL was trading at a huge discount and at the same time their down OIL was trading at something like 100% premium. Therefore the hedge funds started to arb this against futures like crazy. I spotted this due to a very sudden increase in short interest to a ridiculous level in their down oil on the very day their funds "announced" the termination. Therefore I bought up oil and sold short USO, also shorted their down oil like crazy. This is a risk-free arb that the hedge funds and me were able to exploit crazily creating huge vol. The public who wanted to short oil is then sucked in and bought their down oil "product" oblivious to the fact that it had turned into an option. Sometime in June their scams terminated leaving the down oil at --- ZERO. Since I was able to get almost unlimited amount of liquidity in their down and up oil I could only imagine the pain felt by investors who were sucked in to the scam. This was blatant market manipulation and the ridiculous thing was that they used this as a marketing tool for their next scams!! (Including these housing ones!!). But remember, there is no way to hedge housing this time, so the arb opportunity does not exist, so don't expect a free ride like the oil one. A perfect example would be their follow up scam--the UOY and DOY oil shares. Since this time no retail suckers wanted to short oil since it was so low, there was no demand for market manipulation and their funds are trading 0 shares. DEAD. This will be the fate for their housing funds since no one can hedge a position in those and there won't be any free rides even if they play the termination trick again. Their UMM and DMM will trade 100 shares a day and be dead in a quarter.

The macro market people are liars and cheats who should (if not have been) be investigated by the SEC. And you wanna buy a "product" from them? Go right ahead.

MacroShares Major Metro Housing ETPs: Changing the Housing Game

I strongly advise anyone who ever considers investing in this utter piece of c$ap to look at the comment Eric made above. I have been in their "products" ever since their first oil one and have made a ton of money out of them, but not from the underlying movement of oil, but from the sheer stupidity of other suckers who invested in their scams. Here's exactly what happened/will happen:

1) Their scam products have hidden fees of $1.2 million PER YEAR. The fee is fixed regardless of how much the treasury they hold yields and is ON TOP OF THEIR 0.95% annual fixed fee. This amounts to 20% annual cost just in fees bleeding out of their funds every day. The market clearly is not interested in their scam and their AUM is at a meager 18M combined. AND they say in their marketing that their funds have no hidden counterparty risk!! What a bunch of lies!

2) They claim on their web site and every possible literature that their fund tracks the underlying index, which it does not. In fact their oil funds tracked nothing (the correlation to front month oil which they claim to track is? 0.35!). Just to give you a perspective YAHOO stock "tracks" oil better than their funds do.

3) HERE'S THE FRAUD: They claim their funds traded 3 million shares a day in 2008. GUESS WHAT? Their funds traded less than 1000 shares every day in 2008 until April, when they suddenly and secretly announced that their funds WILL TERMINATE IN JUNE. Therefore their funds would be killed in 3 months and no one knows it except for some big hedge funds which they notified in secret. At that time their UP OIL was trading at a huge discount and at the same time their down OIL was trading at something like 100% premium. Therefore the hedge funds started to arb this against futures like crazy. I spotted this due to a very sudden increase in short interest to a ridiculous level in their down oil on the very day their funds "announced" the termination. Therefore I bought up oil and sold short USO, also shorted their down oil like crazy. This is a risk-free arb that the hedge funds and me were able to exploit crazily creating huge vol. The public who wanted to short oil is then sucked in and bought their down oil "product" oblivious to the fact that it had turned into an option. Sometime in June their scams terminated leaving the down oil at --- ZERO. Since I was able to get almost unlimited amount of liquidity in their down and up oil I could only imagine the pain felt by investors who were sucked in to the scam. This was blatant market manipulation and the ridiculous thing was that they used this as a marketing tool for their next scams!! (Including these housing ones!!). But remember, there is no way to hedge housing this time, so the arb opportunity does not exist, so don't expect a free ride like the oil one. A perfect example would be their follow up scam--the UOY and DOY oil shares. Since this time no retail suckers wanted to short oil since it was so low, there was no demand for market manipulation and their funds are trading 0 shares. DEAD. This will be the fate for their housing funds since no one can hedge a position in those and there won't be any free rides even if they play the termination trick again. Their UMM and DMM will trade 100 shares a day and be dead in a quarter.

The macro market people are liars and cheats who should (if not have been) be investigated by the SEC. And you wanna buy a "product" from them? Go right ahead.

The MacroShares Anomaly

Ron,

Nice post, I have some additional thoughts after recently dumping their crappy UOY stock (or whatever it is):

I have the unfortunate experience of buying UOY right after their previous ones terminated, and ever since day one their fund is bleeding out of money. How is this happening? Check this out:

Their fund charges 0.95% annually PLUS (big PLUS) a $600k hidden "fixed annual fee". Since their funds hold treasury which is yielding only 0.1%, their fund combined is bleeding out 0.85% annually. AND let's add in the $600k (PER FUND if I forgot to mention), since their funds are not doing **** they have only $20m sitting in the up and down funds combined, the $1.2m annually adds up to an additional 5% in fees!

Now there you have it, you add up the NAV for both UOY and their down fund which in theory should always equal to $50 (teeter-totter), but in reality it's been slowly declining since day 1. Now they only add up to $47.96 (pre-split level). These scammers are secretly taking money out of the fund every day and now 8 months since they started thing scam the funds have lost 10% of their value simply due to fees!! No hidden counterparty risk? LMAO.

So I suspect the real reason why they split those shares is to hide the effect of the ridiculous fee on their NAV (after split the dollar fee number per share is 1/4 of the original). Maybe it's getting noticed. In any case these two funds deserve a top spot on your ETF deathwatch and macro market or whatever the company's name is need to be prosecuted for fraud.