While the Boston Red Sox are leading the American League East by 8 games, the commodities fund managed by one of its owners is a big loser. In Hedge Funds -- Managed Futures: Changing Course: Becalmed No More [subscription required] Barron's notes that Red Sox principal owner John Henry's commodity fund is suffering a three year, 40% decline in value.

More specifically, On March 31, the John W. Henry & Co. Financial and Metals Portfolio was down almost 20% for 2007 and in the midst of a three-year, 40% slump that was the longest and one of the deepest in its 22-year history. The decline and resulting investor redemptions, cost the firm -- controlled by John W. Henry -- more than 80% of its assets, which now stand at $500 million.

But there is a bit of light at the end of this tunnel. In 2007's second quarter, the portfolio surged 25%. Ironically, Merrill Lynch & Co. (NYSE: MER) ended a long-term relationship with Henry in April and pulled its mostly retail investors' assets out of his fund -- almost exactly at the portfolio's lowest point.

So I'll keep rooting for the Red Sox to repeat their 2004 World Series win. As for Henry, I would not bet my money on his trading skills -- such managed futures funds have high costs, high risk, and heavy reliance on black-box trading systems. I like to sleep at night and don't know how Henry can pull that off.

Peter Cohan is president of Peter S. Cohan & Associates He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned in this post.

John Henry acquired the Boston Red Sox in 2002, and led the team to its first first World Series victory since 1918 in 2004. This year, the team is off to a 26-11 start, good enough to give it the best record in baseball. However the hedge fund empire that gave Henry the money to buy the team has not fared so well. In fact it's performed more like the Kansas City Royals, who have the worst record in baseball. Since December of 2004 (2 months after the Red Sox won the Series), his fund has lost a mind-boggling 36% of its value, and assets under management have been cut in half to about $1.4 billion as investors flee in search of better returns.

The recent free-fall has given the investment legend a pretty poor long-term track record, and got me thinking: Is Henry just no longer that interested in trading commodities and such? He's already earned hundreds of millions, and one could hardly blame him for pursuing pennants instead of pork bellies.

This reminds me of a study I read about a few months ago, which suggests that companies whose CEO's have recently purchased large houses are likely to underperform the market. As I wrote then, "Building an expensive home may be a sign that a once-driven executive is getting bored with work. And besides, who has time to manage things like cash flow and strategic vision when there's wallpaper to pick out, home theater packages to choose from, and a wine cellar to design? Being a CEO takes a lot of time and energy, and so does building a palace. Something's gotta give."

My suggestion to investors: Avoid investments where the CEO or fund manager has interests other than making lots of money with your investment. This might sound cold-hearted, but it takes a super-human to build a great art collection and manage a company. As a loyal Red Sox fan, I'm thrilled that his fund has tanked as the Red Sox have soared, and I'm just glad I didn't have money in Mr. Henry's fund.