Sat, Feb 13, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Jack Schwager's new book debunks commonly held myths about investing

Friday, December 28, 2012

Bailey McCann, Opalesque New York:

"This is the most important book that I have done," Jack Schwager says of his latest release- Market Sense and Nonsense in a recent Opalesque TV interview. "It’s a compilation of everything I have learned about what’s right and wrong with investment, trading and performance evaluation," he says. In the book, Schwager seeks to separate the facts from the fiction in current market folklore in order to help investors and professionals alike gain a deeper understanding about how the market really operates.

For readers, one of the big surprises may be that Schwager says picking the best performing strategies may actually be the wrong thing to do. He says that picking the best recent performer rarely equates to similar future returns. By way of an example, Schwager picks the best 10 S&P sectors and best hedge fund strategies over different time horizons. "Bottom line, what I came up with is no matter how you do this exercise, you almost consistently find that picking the best does worse than the average. So certainly in return risk terms it's even more extreme."

He explains that if investors instead divided their investments among all hedge fund strategies rather than picking the best at a given time, they will do better. Even more surprising his data shows that picking the worst performing stra......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Asia - Hedge fund manager Kyle Bass estimates China's foreign reserves below critical level[more]

    From Nasdaq.com: Investor Kyle Bass stepped up his attack on China's currency, arguing in an investor letter distributed Wednesday that the second-largest economy's foreign reserves are "already below a critical level." The comments mark the latest effort by hedge funds and other investors to raise

  2. Investing - Some hedge funds want to make subprime auto loans next big short, 11 hedge funds that are “all in” on the FANG stocks, Hedge funds short London luxury homes, Cynet raises $7 million from U.S. hedge fund[more]

    Some hedge funds want to make subprime auto loans next big short From Bloomberg.com: A group of hedge funds, convinced they have found the next Big Short, are looking to bet against bonds backed by subprime auto loans. Good luck finding a bank willing to do the trade. Money manage

  3. Investing - Hedge funds see selloff in European bank stocks as buying opportunity[more]

    From WSJ.com: The massive selloff in European bank stocks and bonds is overdone and presents a “phenomenal” buying opportunity, according to some of Europe’s top hedge-fund managers. Despite a 28% slump in European bank stocks this year, including a 38% fall in Deutsche Bank AG and a 34% drop in Soc

  4. Legal - Carlyle accused of fraud by ex-employee, Hedge funds win CDS breach of contract suit against Deutsche Bank, Hedge fund asks for OK on $27.5m Goldman CDO deal, SFO examines Barclays hedge fund profits[more]

    Carlyle accused of fraud by ex-employee From AI-CIO.com: A former portfolio manager claims he was fired for blowing the whistle on “crazy” and “irresponsible” investments. Carlyle Group has been sued by a former portfolio manager for one of its hedge funds, who accused the firm of “knowi

  5. Illiquid assets are all the rage for hedge funds[more]

    From Valuewalk.com: …Institutional investors are increasingly turning to illiquid assets and active management strategies to combat macroeconomic trends, anticipated market volatility and diverging monetary policy, according to a new survey by Blackrock. And this week, Bloomberg has reported that at