My name in Andrew Abraham. I have been investing in commodities and managed futures since 1994. I adhere to the philosophy of trend following.
Trend following stresses a disciplined approach to commodity/ futures trading. Successful trend following and commodity futures investing requires patience, discipline and actively managing the risk. What sets me apart from other traders is that I am not only concerned about the return on investment but how much risk I will have to tolerate to achieve my goals.
Trend Followers returns out perform Warren Buffett
Over the weekend a colleague sent me a short piece that I have known for a long time. As much as Warren Buffett is a legend investor there are unknown commodity trading advisors that have surpassed Warren Buffett’s return as well as not had the draw downs experienced by him of almost 50% in 2008-2009. So why don’t investors consider trend following or managed futures. It is ironic to me that people that traded tech stocks in the early 2000 period considered trading commodities risky. Some of the daily volatility of these tech stocks was enormous. I do not want to negate the risks in trading commodities but when traded with a thought out plan with risk measures such as risk per trade..risk per sector…open trade equity risk…awareness of margin to equity the odds are placed on the commodity traders side.
Look at these comparative returns of Warren Buffett versus several commodity trading advisors… You decide!
Total Return (Alphabetically)
January 2000 – September 2010
“Lost Decade” - Total Rate of Return
Berkshire Hathaway A Share
121.93 %
Abraham Trading
357.22 %
Clark Global Basic Program
332.00 %
Eckhardt Trading (Standard Program)
193.13 %
Man-AHL
195.46 %
Rotella Capital Management (Polaris)*
108.47 %
Superfund Q-AG*
170.59 %
Andrew Abraham
Andrabr9@gmail.com
www.myinvestorsplace.com
Futures trading involves risk. People can and do lose money
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