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Developer/CTA Interview
Frank Pusateri
President, Adirondack Portfolio Management, Inc
Program(s) Developed: Managed futures consultant
Interview Date: September, 2010
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.
In This Issue:
Featured Interview(s):
Gary Hart »
System Developer, Commodity Trading Advisor (CTA) registered with CFTC
From Previous Issues:
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There is a risk of loss in trading. It is the nature of commodity and securities trading that where there is the opportunity for profit, there is also the risk of loss. Commodity trading involves a certain degree of risk, and may not be suitable for all investors. Derivative transactions, including futures, are complex and carry the risk of substantial losses. Past performance is not necessarily indicative of future results. Please read additional risk matters on our web site, It is important you understand all the risks involved with trading, and you should only trade with risk capital. This communication is intended for the sole use of the intended recipient.

About this report The information and links on this website are for informational purposes. The risk of trading can be substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Striker is a member of the National Futures Association ("NFA"), the Managed Funds Association ("MFA"), and the National Introducing Broker Association ("NIBA"). Striker is registered with the Commodity Futures Trading Commission ("CFTC"), and was formerly registered with the Securities Exchange Commission ("SEC"). Additionally, Striker is a former member of the Financial Industry Regulatory Authority ("FINRA"), and the Securities Investor Protection Corporation ("SIPC"). FINRA is the largest non-governmental regulator for all securities business in the United States. Please read Striker Disclosure Statement for the additional disclosure.

The trading performance cited throughout our web site is based on actual trading history, unless otherwise noted. The starting account balance is based on the system developer recommendation. Striker tracks actual performance by recording and maintaining each trade ticket for each system generated. The performance information assumes that no additions or withdrawals have been made. The rate of return for all systems disclosed in the Striker Report is cumulative from the day the system actually started trading at Striker. We maintain a "life" track for all 3rd party systems. We do not necessarily base our records on any particular client account. No one particular customer has achieved these results. The percentage returns reflect inclusion of commissions and fees.The actual percentage gains/losses experienced by investors will vary depending on many factors, including, but not limited to: starting account balances, market behavior, the duration and extent of investor participation (whether or not a client takes all signals for a system) in the specified system and money management techniques.

Striker is a revolutionary concept in action: an international, professional team of brokers dedicated to trading only for clients. It bears repeating: unlike most other brokers, Striker does NOT trade futures for itself or any of its employees. This policy has been in place from the start in order to guarantee that our entire focus remains on the interests of our clientele. Striker believes that when brokers are allowed to trade for themselves (or have in-house trading practices) there is a strong potential for conflict of interest, as the broker may place more importance on his own trading activities (or that of his firm's) than on those of his clients. Finally, Striker has no financial ties to system developers, so there no bias or pressure on how we report the actual trading results posted in our client section. This section is designed specifically for Striker's clients, so they may audit their results on a daily, weekly, monthly, or annual basis.