million to US investors and closing his fund to them so he can boost returns by increasing activity in stocks and bonds, Bloomberg reported.

Trout Trading Management can increase equities holdings without having to comply with SEC regulations by dumping US investors. Otherwise the firm would have to face SEC demands for disclosure and other limits that management fear would limit the amount of money they could make.

Up to last month, Trout has returned 17.4 percent after fees. That compares with 7.7 percent for the Goldman Sachs Commodity Index. Since January 1, 1988, Trout has achieved average annual returns of 25 percent.

Paul Eustace, president of Hamilton Fund Ltd., the Trout fund for US investors, said, "It isn't as if he is abandoning futures in lieu of securities.'' But he's been adding them to his portfolio as the assets have grown.

Once the money is returned to the US investors by the end of February, Trout will then have about $700 million under management. Hamilton fund will still have about $10 million from non-US investors.

To invest in futures, portfolio managers don't need to put up the entire value of the contracts they are purchasing. That means commodities pools normally have more cash than the average stock or bond fund. Stocks and bonds are used to generate additional returns.

At present, Hamilton Fund must follow regulations of the US Commodities Futures Trading Commission as it is considered primarily a commodities futures trading pool. Trout was concerned that as the fund increased its stakes outside of futures, it would also have to comply with SEC regulations.