Articles by Dwayne Strocen on ArticleSnatch.com

Hedge Fund vs Mutual Fund, Understanding The Differences

Sun, 18 Apr 2010 18:06:54 -0400

In 1949 Australian Alfred Jones was credited with the term "hedge fund". Historically it derives its name from the use of hedging to manage risk while achieving superior returns. Today, a hedge fund is an un-regulated investment vehicle designated for sophisticated, also known as the "Accredited Investor". Mutual funds gained popularity in the 1980's. Prior to this time, the problem of the small investor was in obtaining sufficient knowledge to make informed investment decisions, and so the average person avoided stock market investing. Instead money was held in traditional savings accounts or placed with a bank in a Guaranteed Investment Certificate ("GIC") or Certificate of Deposit ("CD"). What to do. The small investor was not able to obtain a professional money manager without $10 million or more to start. But what if he could pool his money with other small investors to reach this minimum threshold. And so the mutual fund was created to address these exact concerns. The mutual fund concept was simple, allow the un-sophisticated investor access to the strategies of the professional money manager. This was done by pooling small sums of money, as little as $20.00 deposited monthly. **End Summary** Topics: investment]]> genuinecta.com]]> hedge fund]]> mutual fund]]> investi]]>]]> About the Author: ]]> Dwayne Strocen is a registered CTA, Portfolio Manager. He manages the Global Climate Fund, an environmentally friendly hedge fund focused on the reduction of greenhouse gases. Website: http://www.co2climatefund.com View more information about hedge funds and Who We Are

Transparency In Hedge Fund Investing Is Critical For Investors

Tue, 29 Dec 2009 16:56:56 -0500

Fund redemptions are nothing new. Every recession or bear market sees investors redeeming their fund investments and moving to asset classes which provide a greater degree of safety. For most, this is the Government Treasury Bill also called the T-Bill. While reasons for redemptions are as varied as the investment selections themselves, it seems that individual investors are uncertain of their understanding of what their money has been invested in. While mutual funds are marketed to the investor with a lower knowledge of investment products, the hedge fund has always been the investment choice for more knowledgeable investors or the "Accredited Investor". But now it seems even this group is calling for the need of greater understanding from their investment managers. The battle for returns which out perform the index has resulted in many Portfolio Managers refusing to disclose their trading program for fear others will duplicate their trading style. It is said by many managers that it's this ability to observe unique characteristics in the market place that differentiates their funds performance from the typical returns generated by bottom quartile performing funds and fund managers. **End Summary** Topics: managed account]]> genuinecta.com]]> CTA]]> hedge fund]]> derivatives]]> portfolio manager]]>]]> About the Author: ]]> Dwayne Strocen is a registered CTA and derivatives analyst assessing market risk for institutional investors. He also manages the Global Climate CTA Fund, which is focused on the reduction of greenhouse gases and global warming. Website: http://www.genuineCTA.com View more information about his managed account program and about trading greenhouse gases.

Consider A CTA Managed Fund For Balanced Asset Allocation

Mon, 07 Sep 2009 10:24:32 -0400

You might be wondering what a CTA is. A CTA is a Portfolio Manager for derivative products such as foreign exchange, commodities or futures. If you're familiar with traditional mutual funds or hedge funds, you'll know the investment decisions are made by a specialist in stocks or bonds. These are also called equity and fixed income products. An equity fund is managed by an equity Portfolio Manager known as a CFA and a bond fund is managed by a fixed income Portfolio Manager also a CFA. Their exists a third type of Portfolio Manager and that is one responsible for managing a fund which is invested in products like currency, carbon emissions, precious metals, agriculture products and others. These Portfolio Managers are known as CTAs and they manage CTA funds sometimes known as a Managed Futures Fund. Despite the obvious, each investment style has its own unique characteristics. For example, a traditional equity investor only makes money when the stock market is rising. They lose money during a falling or bear market. Wouldn't it be fantastic to win no matter which direction the market went. Well that is exactly what happens in a CTA fund. **End Summary** Topics: investment]]> genuinecta.com]]> hedge]]> mutual]]> fund]]> investing]]> derivatives]]> ]]>]]> About the Author: ]]> Dwayne Strocen is a registered CTA, Portfolio Manager. He manages the Global Climate Fund, an environmentally friendly hedge fund focused on the reduction of greenhouse gases. Website: http://www.genuineCTA.com View more information about CTA funds and trading greenhouse gases.

Carbon Emission Trading, The Basics Explained

Fri, 26 Dec 2008 00:00:00 -0500

The Kyoto Protocol is a UN-led international agreement reached in 1997 in Kyoto, Japan to address the problems of climate change and the reduction greenhouse gas emissions. The Kyoto Protocol went into force on February 2005. Signatory countries are committed to moving away from fossil fuel energy sources - oil, gas, and coal, to renewable sources of energy such as hydro, wind and solar power, and to less environmentally harmful ways of burning fossil fuels. Greenhouse gases such as carbon dioxide, methane and nitrous oxide are mainly generated by burning fossil fuels. Higher levels of greenhouse gas emissions cause global warming and climate change. The Protocol commits 38 industrialized countries to cut greenhouse gas emissions by 2008-2012 to overall levels that are 5.2 percent below 1990 levels. Targets for greenhouse gas emissions reduction were established for each industrialized country. Developing countries including China and India were asked to set voluntary targets for greenhouse gas emissions. The Canadian target for Kyoto is to reduce by 2012, greenhouse gas emissions by six percent below their 1990. **End Summary** Topics: carbon]]> emissions]]> trading]]> hedging]]> genuinecta.com]]>]]> About the Author: ]]> Dwayne Strocen is a registered Commodity Trading Advisor specializing in analyzing and hedging Market and Operational Risk using exchange traded and OTC derivatives. Website: http://www.genuineCTA.com . View in depth information about Carbon Emissions and the benefits of hedging its risk.

Hedging, What Is It, And Its Uses In Risk Management

Wed, 22 Oct 2008 00:00:00 -0400

Second of a two part article Before I discuss the use of hedging to off-set risk, we need to understand the role and the purpose of hedging. The history of modern futures trading began in Chicago in the early 1800's. Chicago is located at the base of the Great Lakes, close to the farmlands and cattle country of the U.S. Midwest making it a natural center for transportation, distribution and trading of agricultural produce. Gluts and shortages of these products caused chaotic fluctuations in price. This led to the development of a market enabling grain merchants, processors, and agriculture companies to trade in contracts to insulate them from the risk of adverse price change and enable them to hedge. The first commodity exchange was the creation of the Chicago Board of Trade, CBOT in 1848. Since then, modern derivative products have grown to include more than the agricultural industry. Products include Stock Indices, Interest Rates, Currency, Precious Metals, Oil and Gas, Steel and a host of others. The origins of the commodity and futures exchange was created to support hedging. **End Summary** Topics: genuineCTA.com]]> CTA]]> hedge]]> fund]]> market]]> risk]]> hedging]]> ]]>]]> About the Author: ]]> Dwayne Strocen is a registered Commodity Trading Advisor specializing in analyzing and hedging Market and Operational Risk using exchange traded and OTC derivatives. Website: http://www.genuineCTA.com . View in depth information about Hedging and the benefits of Investing Off-Shore .

Using Technical Analysis To Manage Risk And Maintain Top Quartile Performance

Wed, 22 Oct 2008 00:00:00 -0400

Recent market reversals brought about by the Sub-Prime mortgage melt down is clearly a significant market correcting event. No matter if you work in the risk department of a large bank with many employees or a small fund of funds as co-manager, you share the same basic concerns regarding the management of your portfolio(s) 1. how to maintain top quartile performance; 2. how to protect assets in times of economic uncertainty; 3. how to expand business reputation to attract new client assets; It remains common in the financial industry to hear experienced Portfolio Managers state their risk management program consists of timing the market using their superior asset picking skills. When questioned a little further it becomes apparent that some confusion exists when it comes to hedging and the use of derivatives as a risk management tool. Risk management analysis can certainly be an intensive process for institutions like banks or insurance companies who tend to have many diverse divisions each with differing mandates and ability to add to the profit center of the parent company. However, not all companies are this complex. **End Summary** Topics: genuineCTA.com]]> CTA]]> hedge]]> fund]]> market]]> risk]]> hedging]]> ]]>]]> About the Author: ]]> Dwayne Strocen is a registered Commodity Trading Advisor specializing in analyzing and hedging Market and Operational Risk using exchange traded and OTC derivatives. Website: http://www.genuineCTA.com . View in depth information about Who We Are and the benefits of hedging your risk.

Market Risk â Not To Be Ignored or Overlooked

Fri, 11 Jul 2008 00:00:00 -0400

The first of a two part article…. Fund managers, whether they be equity or bond traders, know all too well that returns are not simply a result of their asset selection prowess. Many external factors come into play. But what are the issues facing the professional money manager. Commodity Trading Advisor, Genuine Trading Solutions of Toronto, find not all fund managers analyze their market risk. The company explains this is often due to a lack of education and a failure to understand the mitigating solutions for off-setting risk. Genuine Trading Solutions President, Dwayne Strocen explains market risk as “the unexpected financial loss following a market decline due to events out of your control.” He goes on to explain that stock or bond market volatility or market reversals can be the result of global events happening in far flung corners of the globe. Top analysts and fund managers simply do not have the resources to crystal ball gaze and predict those events. Examples of several major unexpected events that sent shock waves throughout the financial community have been: - 1982 Mexican Peso devaluation; - 1987 stock market crash knows as “Black Monday”; - 1989 USA Savings and Loan Crisis; **End Summary** Topics: Registered Commodity Trading Advisor specializing in analyzing and hedging Market and Operational Risk using exchange traded and OTC derivatives.]]>]]> About the Author: ]]> Dwayne Strocen is a registered Commodity Trading Advisor specializing in analyzing and hedging Market and Operational Risk using exchange traded and OTC derivatives. Website: http://www.genuineCTA.com . View more detailed information about Risk Management and Foreign Exchange Trading .

The Role Of A CTA, Commodity Trading Advisor

Fri, 11 Jul 2008 00:00:00 -0400

Commodity Trading Advisor, Genuine Trading Solutions, a registered CTA with the CFTC, says the role today of a CTA is constantly evolving. Dwayne Strocen, President of Genuine Trading Solutions says once upon a time a Commodity Trading Advisor was content to be known as a Portfolio Manager trading commodities and futures for a managed futures fund. There is no question today’s investor has become more sophisticated. In response, today’s selection of investment products has become ever more complex and varied, the need for the CTA to understand the uses and management of these products becomes even more acute. So what exactly is the role of today’s Commodity Trading Advisor. Certainly trading of derivative products for a managed futures fund continues to be as important as before. A CTA has also become more involved with derivative analytics. This role is essentially focused upon becoming an analyst to structure and analyze the more multi-faceted requirements demanded by hedge funds, pension funds and structured products. The use of derivative analytics to manage the adverse risk of an equity or bond portfolio brought about by adverse market conditions is critical in preserving asset growth. **End Summary** Topics: genuineCTA.com]]> CTA]]> market]]> risk]]> trader]]> trading]]> futures]]> commodity]]> broker]]> ]]> About the Author: ]]> Dwayne Strocen is a registered Commodity Trading Advisor specializing in analyzing and hedging Market and Operational Risk using exchange traded and OTC derivatives. Website: http://www.genuineCTA.com . View more detailed information about Commodity Trading Advisor and understanding How to Trade Commodities .

Articles by Dwayne Strocen on ArticleSnatch.com

Hedge Fund vs Mutual Fund, Understanding The Differences

Transparency In Hedge Fund Investing Is Critical For Investors

Consider A CTA Managed Fund For Balanced Asset Allocation

Carbon Emission Trading, The Basics Explained

Hedging, What Is It, And Its Uses In Risk Management

Using Technical Analysis To Manage Risk And Maintain Top Quartile Performance

Market Risk â Not To Be Ignored or Overlooked

The Role Of A CTA, Commodity Trading Advisor

Market Risk â Not To Be Ignored or Overlooked