Up-and-coming managers with diverse approaches describe their strategy and what they see happening in the markets. Their comments have been edited.
David Mousseau of Lone Wolf Investments LLC
Mr. Mousseau was the head trader for a subsidiary of Northern Indiana Public Service Corporation, where he was responsible for the risk-management of existing physical electricity positions and proprietary trading. He has worked for various other energy businesses.
2008 return for Carbon Emissions Instrument Program: 15%
Gabriel Pellegrini of Global Edge Capital Management
Based in Sao Paolo, Brazil, Gabriel has worked at Bolsa de Mercadorias & Futuros after an earlier career as a teacher's assistant.
2008 return: 23%
January was a good month for our short term strategies, which showed profits in both stock indexes and currencies. The volatility in equities markets around the world contributed to the month's performance, however we experienced some losses in the fixed-income sector where the rise in interest rates negatively impacted sector returns.”
Tim Pickering of Auspice Capital Advisors
Before founding Auspice, Tim was Vice President of Options Trading at Shell Trading Gas and Power in both Houston and Calgary. Prior to that, he traded for TD Securities in Toronto in a wide range of instruments including foreign exchange, bonds, money markets and exotic derivatives. In addition to Auspice he currently manages an exchange-traded fund for Claymore.
2008 return in Diversified Commodity Fund: 44%
Douglas Bry of Northfield Trading LP
In his early career, Doug was a trial attorney. In 1987 he and Philip Spertus formed Technical Trading Strategies Inc. to apply computer technology to the creation of quantitative models for trading global futures markets and in 1989 they formed Northfield.
2008 return for Diversified Program: 14.3%
2008 was a tumultuous year for most asset classes and investments. However, through this difficult period, Commodity Trading Advisors handled the risk and volatility well.
Charlie & Jes Santalauria of Parrot Trading Partners LLC
Jes is an experienced real estate developer who along with his son Charlie manages several portfolios employing their unique “Calendar Condor” hybrid options and futures strategy. Charlie recently spoke at a hedge fund incubation conference held at the Harvard Club of New York. Both Jes and Charlie were featured emerging money managers at the MFA Chicago conference the year before last.
2008 return: 11%
Our strategy for the upcoming months will be to add positions throughout each move and to take profits accordingly. We will be more conservative than we have been in the past, but expect that we can generate returns similar to those in past years relative to the S&P 500.