The Striker Report - gold standard for objective trading research

Frank Pusateri

President, Adirondack Portfolio Management, Inc

Program(s) Developed: Managed futures consultant

Interviewed by John F. Gallwas - Founder of Striker Securities

Frank Pusateri has been a Managed Futures Professional and Industry Leader for over 30 years. He currently is

President of Adirondack Portfolio Management, a consulting firm for managed futures
Executive Vice President of Fall River Capital a leading CTA and CPO firm
Board Member of the National Introducing Brokers Association
President, CTA EXPO LLC

CTA EXPO was established in 2008 to help professional capital raisers and allocators identify futures trading talent and to promote investing in managed futures. In two years, the EXPO has grown to be a leading industry event. Participants include commodity trading advisors, capital sources, brokerage firms, exchange representatives, and industry service providers. CTAEXPO is also a useful source of information for those considering joining the managed futures industry.

From the beginning, Striker endorsed the concept of CTA EXPO and friend Frank Pusateri. For information on the one day conference that will be held in Chicago on November 3, 2010. See details».

John Gallwas: With new financial regulations coming, what do you expect may be the impact on the futures industry generally and the managed futures business specifically?

Frank Pusateri: It is becoming harder and harder to start up a new firm that is required to be registered. New regulations are causing part of the rising cost of starting and operating a firm in the managed futures industry. I expect these additional costs will be passed on, where possible, to the investor. I also believe we will see an increase in the number of firms operating an umbrella under which they joint venture with or employ traders. The hedge fund arena has already seen the development of this type of structure.

John Gallwas: BarclayHedge estimates that assets under management for Managed Futures were up 4.6% to $233.48B for the first half of 2010 even though their CTA Index was off 1.04% for the period. What should our readers know about this trend?

Frank Pusateri: It has become extremely difficult to find investments that diversify a portfolio of stocks and bonds that also have liquidity and transparency. Managed Futures is currently filling this need and attracting client interest.

The ability of futures traders to go both long or short the futures markets with equal ease allowed many CTA's to profit during the declining stock markets of 2007 and 2008. More recent, slightly negative, performance has done nothing to dispel the idea that CTA's diversify a portfolio of stocks and bonds.

The increase in assets under management for Managed Futures is not a new trend. It is the continuation of a trend of increased assets that goes back many years and that shows no signs of stopping as investors become more aware of the benefits of Managed Futures.

John Gallwas: Why do you think CTAEXPO in Chicago and New York has been so successful, and what's new for CTAEXPO Chicago 2010?

Frank Pusateri: I think we have filled a real need and were lucky to have the right conference at the right time. We have found that professional asset allocators and clients are actively looking for new strategies for their portfolios and new trading talent. We are attracting not only traditional professionals from the managed futures industry but also Fund of Funds, Family Offices and Wealth Management Companies that have done little or no futures.

CTAEXPO Chicago will be our largest conference to date. It is almost too large, with an anticipated attendance of 350. We want CTAEXPO to continue to serve as a networking event where people can meet other people. We do plan to cap our future conferences in the 350-400 range.

The quality of speakers on our program continues to improve. Chicago will have speakers from Samsung Asset Management, Credit-Suisse, PNC Capital Advisors and Kenmar.

John Gallwas: What advice would you give a trader or system developer interested in becoming a professional Commodity Trading Advisor?

Frank Pusateri: Attend CTAEXPO and get a feel for the industry and the industry's participates before committing yourself to a business strategy and plan. These are the people you have to compete with and deal with as a trading advisor.

This interview is for informational purposes only and is not intended to be a solicitation of any kind. Trade only with risk capital. The risk of trading can be substantial and each investor and/or trader must consider whether trading systems are a suitable investment.