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I don't want to post any judgment on Joe
Duffy'sytem which I don't know and I have not seen his offer but , speaking in
general, I am very uncomfortable with systems offered for sale to the public.
Assuming the system works this is a very poor business decision.The $100,000
resulting of the sale of 100 systems is pocket change compared to the 20%
incentive fees that one gets by managing other's people money. I know that it
has been argued that some people don't want or are unable to deal with
investors. However they could offer their systems to CTA or proprietary desks
that would be more than happy to buy them. Unfortunately, we, poor
professionals, are never offered such systems.
Doubling the initial investment every month is just
plain laughable. At Alternative Asset Management we aim at 30-35% per year
BUT to try to achieve that we have to suffer a volatility close to 10. So much
for making money every month. We don't know how to do that (in
our opinion the only way to achieve consistent low volatility MONTHLY return is
with arbitrage strategies, capitalizing on small price discrepancies...which
gives small but consistent returns) That's OK for a lot of individual qualified
investors but unacceptable for most of the institutions for whom we have to cut
the leverage, and the expected profits by half (at least). Even 1% monthly
return attracts a huge amount of money because it's very rare and difficult to
achieve: I know of a hedge fund (Fairfireld Sentry, I have no relation with it
and it's closed to new investors anyway), which has achieved an average of
13% yearly return (about 1% per month, with a maximum drawdown of 0.55%) since
1990 and it has $3.5 BILLION under management.
Now, we are open to new ideas and we would
definitely be willing to pay $100,000 for a system that could prove
consistently make 1.5% (forget about 100%) a month (while we are at it let's
beat Fairfield) with a volatility of 0.5, AND to add a share of the incentive
fees (to be negotiated) .
Let's see how many offers we can get.
Jean Jacques Chenier
Alternative Asset Management
<A
href="http://www.alterama.com";>www.alterama.com
----- Original Message -----
From: "jdfo" <<A
href="mailto:jdo1@xxxxxxxxx";><FONT face=Arial
size=2>jdo1@xxxxxxxxx>
To: <<A
href="mailto:realtraders@xxxxxxxxxxxxxxx";><FONT face=Arial
size=2>realtraders@xxxxxxxxxxxxxxx<FONT face=Arial
size=2>>
Sent: Saturday, March 02, 2002 6:58 PM
Subject: [RT] Joe Duffy
> I recently
received an offer from Joe Duffy regarding a trading system> he is
offering to only 100 takers. The system, DNA Market Timing System>
(Dynamic Natural Algorithm), costs $995 and claims the fantastic results
of> doubling the initial investment each month . Anyone have any
experience with> Joe and any of his systems? And what were the
results?> Thanks for any response.>
John> > > > To unsubscribe from
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