Managed Trading: Myths & Truths (Hardcover)

by Jack D. Schwager (Author) "Actual" results refer to monthly return figures derived in accordance with procedures defined by the Commodity Futures Trading Commission (CFTC)..." (more)
Key Phrases: multimanager portfolios, indicated relative percentages, annualized geometric return, Sharpe Ratio, New York, Anglo Dutch (more...)

Editorial Reviews

Product Description
With Market Wizards and The New Market Wizards, two of the bestselling finance titles of all time, Jack Schwager is one of the most important and visible figures in the futures industry today. Now, in Managed Trading, the latest volume in the Schwager on Futures series, he takes an in-depth look at the increasingly prominent new asset class: managed futures, professionally managed investments in commodity and financial futures markets. Due to their potentially high returns and their diversification and inflation hedging potential, managed futures have grown rapidly in popularity and acceptance in the past decade. Today, there are over $25 million in managed futures accounts. Schwager's full-scale examination covers all aspects of this investment sector, encompassing performance evaluation, manager selection, investment timing, and portfolio considerations. In the process, he explodes many commonly held investment myths. Managed Trading is the most substantive book on the subject, and an indispensable Schwager title no investor should be without.

The following are some of the many topics covered:

• Why "actual" trading results are sometimes a misnomer
• Why many investors in managed futures lose money even when they select a winning manager
• Why shifting assets from "winners" to "losers" is often an excellent strategy
• Why it is usually better to invest in managers when they are experiencing drawdowns as opposed to when they are on winning streaks
• Why the actual performance of funds and pools routinely deteriorates dramatically from the prospectus results
• Is past performance predictive of future performance?
• Is the addition of managed futures to conventional portfolios beneficial or detrimental to performance?
• Is diversification beneficial?
• Performance measures: conventional and new
• Why all conventional CTA indexes are misleading

With numerous charts, tables, and examples illustrating key points throughout, Managed Trading is written in the informative, insightful, and nontechnical style that is Schwager's hallmark. An important addition to this landmark series by one of the world's premier authorities.

An in-depth investigation into the increasingly popular investment: managed futures—written by one of the world's leading authorities

"Jack Schwager has written the definitive book on managed futures investing. It is exhaustive in coverage, and the analysis is exceptionally rigorous. The writing is refreshingly candid and sure to provoke discussion on many important topics in the managed futures industry. This book should be required reading for anyone considering investing in managed futures." — Scott Irwin Professor, The Ohio State University

"Jack continues to be both an educator and a portfolio manager. Managed Trading is a wonderful book and much needed in the industry. I consider it required reading for investors and financial industry professionals. Finally, a road map which outlines and explores investment issues succinctly." — M. Elaine Crocker President, Moore Capital Management, Inc.

"This book is a 'must-read' for anyone thinking of investing in managed futures. Schwager combines the best of academic research on managed futures investments with his own practitioner experience to provide a comprehensive and insightful analysis of the managed futures industry." — Franklin R. Edwards Arthur F. Burns, Professor, Finance and Economics Columbia Business School

"The futures markets will continue to grow worldwide. You should read Jack Schwager whether you are contemplating such investments or are already investing, or even if you just want to understand what is happening." — Jim Rogers Author, Investment Biker

"Schwager puts managed futures in its proper perspective as a portfolio investment, providing the reader a complete and enlightening tour of the managed futures world. His writing style makes for easy reading and his common sense and good judgment shine through as he surveys the academic literature, linking the practical and the theoretical in evaluating these investments. New investors and old hands alike will find this a 'must buy and hold' book." — Mark J. Powers President, Powers & Dubin Asset Allocation and Management Co. Editor, The Journal of Futures Markets

From the Publisher
Now Jack Schwager, the man most traders think is futures, investigates the financial practices of a $25 million business many experts feel is dangerously out of control. Sure to stir controversy in corporate boardrooms and on busy trading floors, this timely detailed book takes readers to the frenzied center of the managed futures market, exploding many commonly held myths about its theoretical underpinnings and performance. Discusses hot topics such as investor behavior, the benefits of diversification, and the effect of adding managed futures to conventional portfolios.

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Product Details

• Hardcover: 318 pages
• Publisher: Wiley; 1 edition (August 23, 1996)
• Language: English
• ISBN-10: 0471020575
• ISBN-13: 978-0471020578
• Product Dimensions: 10 x 7.2 x 0.9 inches
• Shipping Weight: 1.8 pounds (View shipping rates and policies)
• Average Customer Review: 4.0 out of 5 stars See all reviews (4 customer reviews)
• Amazon.com Sales Rank: #718,464 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

12 of 12 people found the following review helpful:

5.0 out of 5 stars This book is a must for users of managed futures!, May 14, 1998

By A Customer

Jack Schwager is one of the best writers around on the subject of futures and trading. Let me begin by saying that this is one of my picks for the three best books of 1996. Why? First of all, it is one of the few books on futures trading that is statistically sound and sensible. There are three main themes:

1. Performance numbers are often not what they appear to be.

2. Past performance is far less predictive of future performance than generally believed.

3. There are investment strategies that can be used to enhance expected portfolio performance.

In my opinion, no one should include managed futures in a portfolio without this book. And the techniques of measurement and analysis described here set the standard for those who would be Commodity Trading Advisors. I recommend it highly!

6 of 8 people found the following review helpful:

5.0 out of 5 stars Read this book if you are considering investing in any CTA, July 12, 1999

By A Customer

An excellent book, not for the amateur. Prospective readers should also be aware that CTA requirements are very high; running into millions of dollars. The next best choice are pools. However even these will require at least $25,000. This is a great book for would be hedge-fund investors as well. Schwager's ideas on monthly rebalancing and investing during drawdown periods are great examples of how counter intuitive ideas are very often the correct ones in the world of investing.

6 of 10 people found the following review helpful:

5.0 out of 5 stars A MUST READ SERIES FOR WHOEVER WANTS TO TRADE IN FUTURES, September 23, 1999

By A Customer

This Series "Schwager on Futures" is the biggest work has ever been written on futures trading. As a Futures Trader I advise everybody to read these books before to starts any real trading in Futures, that if not taken in the proper way can be very painfull. As a Member of IFTA(International federation Of Tecnical Analisys)I suggest you to read it joint with John Murphy's "Technical Analisys f Futures Markets" and "Intermarket Technical Analisys" this will give you a integral knowledge of Futures Environment that is what you need on your Trading philosophy. I always let these books on my desk because I need them so many times during my trading day. THEY ARE A REAL REFERENCE. The good thing of this series is that you can test your comprension by the various study guides. Reading the book about "Managed Trading" You can even get able to judge the returns of the various CTA and decide when it is better to invest in them and to whom give your money.Probably you are not be interested in the Fundamental analisys book but remember, especially in the commodities markets, EVEN IF YOU ARE GOING TO TRADE TECHNICALLY IS VERY IMPORTANT TO UNDERSTAND FUNDAMENTAL ANALISYS!!! Thank you very much to have spent all this time for read me. If you still have some doubts do not hesitate to contact me at my E-mail. Buon Trading!!!