In part two, Schwager describes his role as portfolio management role at ADM.
He also discusses the growing trend toward managed futures mutual funds, which have grown to about $9 billion in assets under management at the end of November 2012, according to data from CME Group and Morningstar. Schwager believes the availability of such products could provide more vehicles for diversity in individual portfolios.
Finally, Schwager provides his thoughts about the potential growth for hedge funds and alternative investments.
While Schwager has spent decades in the managed futures space, including 22 years as director of futures research for various Wall Street firms and run a CTA as well, he is not a big fan of aircraft carrier sized CTAs, because such behemoths are limited in the sectors they trade, he says. He also provides a cautionary comment on the growth limitations of the managed futures space.
Jack Schwager is a well-known name in the financial market community today, as author of trading classics such as: Market Wizards in 1989, The New Market Wizards in 1992 and Stock Market Wizards in 2001. He’s added to the series in May 2012, with Hedge Fund Market Wizards, and more recently released book Market Sense and Nonsense, where he explores investment models and the theories of how markets work.