Andrew has been in the financial arena since 1990. He is a Registered Investment Advisor ad affiliate of Abraham Bedick Capital. Since 1993 Andrew has been a proponent of quantitative mechanical trading programs. Andrew's major concern is not only total return on investment but rather the amount of risk that one would have to tolerate in order to achieve returns He focuses on developing quant models that encompass strict risk adherence and correlation. He has been a speaker at conferences as well as an author of numerous articles. Andrew has spent years researching ideas that have the potential to outperform indices as well as maintain fewer draw downs.
This week investors who thought they were avoiding risk saw their worst nightmare sentenced to 150 years, Madoff. Who are these investors, while attempting to avoid risk, were they simply naive, stupid or just plain greedy. How can one really expect to generate returns that were simply too good to be true. I was lucky to have invested with Trout and his draw downs you could count on two hand. However with Maddoff… NO DRAW DOWNS? Where were the so called experienced experts, the financial advisors, the fund of fund managers,accountants that all knew that everything has risk and anything too good to be true is not? It is very interesting to me as a long term investor in commodity futures trading and trend following these so called experienced experts shun trend following and commodity futures trading as risky. Yes,commodity futures trading can be risky, so does driving a car. However when money management and risk management are applied some of the risks are manageable. Even though I had a chance to invest with Madoff and be one of the lucky few he would take money from…it did not make sense how he could not have losses. I have really yet to meet a manager who never has losses. Losses are like breathing. You make some money…you lose some money… the difference with commodity futures trading… there are only 4 things that can happen… big losses…small loses… big profits…small profits…that is it…
The risk averse Madoff investors only got BIG LOSSES… Accept the risk..Risk is all around us…when we drive..when we eat..we can not prevent the most basic virus… Trend following is similar to life…. Risk is all around us… but we attempt to manage the risk.
Andrew Abraham
www.myinvestorsplace.com
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