Fri, Dec 19, 2014
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. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  4. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und

  5. Performance - Lansdowne, Man Group, other hedge funds profit from shorts in oil, Turmoil boosts hedge funds that bet against Russia, oil, CTAs post strongest returns since December 2010[more]

    Lansdowne, Man Group, other hedge funds profit from shorts in oil From Valuewalk.com: The rising short interest in oil companies implies that the worst for oil is yet to come. Data from Markit shows that short exposure in energy sector of S&P 500 is still looming close to the highest mar