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Jack Schwager, Emanuel Balarie team up to launch multi manager futures and FX fund

Friday, June 01, 2012

amb
Jack Schwager
Bailey McCann, Opalesque New York:

On June 1, US-based ADM Investor Services plans to launch the ADM Investor Services Diversified Strategies Fund, a portfolio of futures and FX managed accounts. ADM Investor Services has tapped into the experience and expertise of industry veteran Jack Schwager to spearhead the manager selection and portfolio construction for the fund. Schwager is the author of John Wileys Schwager on Futures series and the best-selling Market Wizard series, which includes the recently released Hedge Fund Market Wizards. The fund is co-managed by Emanuel Balarie who heads up Balarie Capital Management, the managed futures division of Archer Financial Services.

The funds strategy will be unique in several ways. "I have deliberately constructed a portfolio in order to get literally zero correlation among the managers," Schwager explains. "At the end of the process, when we defined the portfolio and I did a correlation matrix of the managers, the average pair correlation was 0.02%."

In order to achieve this degree of diversification, the portfolio is constructed with an initial group of approximately 20 managers each taking an entirely different approach. Because of the lack of correlation, the portfolio is also expected to have very low volatility. The fund will use notional funding to increase volatility to a target of approximately 6%.

The fund will also operate entirel......................

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