Victor Sperandeo – A Lifetime of Trading:
Victor Sperandeo is a renowned trader and respected financial commentator based in the Dallas, Texas. Sperandeo has over 45 successful years on Wall Street in trading both independently with his own money and on behalf of big names and other notable investors such as Leon Cooperman and George Soros. He is widely known as “Trader Vic” in Wall Street and Victor among his friends and acquaintances. Sperandeo was given that nickname because of his intellectual ability and skills to trade profitable on the Wall Street.
Victor Sperandeo is the founder, CEO and President of the (AFT), or Alpha Financial Technologies LLC, a founding partner of EAM Partners L.P., and CEO and President of the EAM Corporation.
His many years at Wall Street and immense experience in trade and finances has made Sperandeo an expert in commodities especially in the metal and energy sectors. He first became popular and made a name for himself among industry leaders when he accurately predicted the 1987 market crash in a media interview.
When his prediction of the crisis turned out to be true, Wall Street started taking his opinion seriously. His predictions on the markets have made headlines ever since.
Victor Sperandeo has been recognized for his expertise in futures market trading and for development of trend-following strategies and futures based trading indexes. He is known for employing rule-based quantitative models and well managed strategies that have been designed to deliver dependable returns with significantly decreased volatility over a long period.
Sperandeo has extensive experience trading and managing futures on behalf of clients having managed futures trading for EAM Group of Companies and global investment banks such as HSBC, RBS and Nomura.
Early Beginnings 1968–2000 and Professional Career
Victor Sperandeo was born in 1945, in the United States. He began his trading career in 1968 when he took a position as an options trader dealing with over-the-counter securities at Filer Schmidt & Co., a well-known dealer of stock options.
In 1970 he left Filer Schmidt & Co and joined U.S. Options. There he continued trading as a trustee for company clients and as a securities options trader for banking institutions. Additionally, he continued working with Over-The-Counter securities.
In 1970, Mr. Sperandeo had a brief stint at Marsh, Block & Lieber before leaving to found his own trading firm Ragnar Option Corporation. Ragnar, which focused on Sperandeo’s speciality in over the counter futures, employed tailor made customer-centered strategies. This strategy attracted increased investor interest, and in a short period of time Ragnar became the largest over-the–counter securities options dealer not only in the United States, but globally.
Victor Sperandeo served as Ragnar’s President until February 1977, when it was merged with Weeden to form Weeden & Co. There he excelled again becomming the block trader in glamour stocks. He was soon appointed Vice President, a position he served until Weeden was liquidated in 1978.
But Sperandeo was not done just yet. He immediately moved to Interstate where he went into managing proprietary trading accounts and other private accounts for select clients until 1986.
In 1979, Mr. Sperandeo launched Hugo Securities Co. Inc., where began utilizing his teaching skills. Willing to share his experience and skills as a trading guru, Sperandeo used his firm to teach other traders in the market how to build a market maker business and how to be become a specialist in trading securities options. Hugo Securities eventually acquired several trading seats on the NYSE, as well as the Chicago Mercantile Exchange, the Pacific Stock Exchange, American Stock Exchange and Philadelphia Stock Exchange.
In 1982, Sperandeo managed a short-term portfolio for the Quantum Fund owned by George Soros. While managing his own firm, Hugo securities, he worked as the principal and point person for trade advisors and commodity advisors. Mr. Sperandeo registered himself in February 1984, as a Commodity Trading Advisor and Commodity Pool Operator serving in that capacities until March 1987.
He also managed the Victory Partners hedge fund, trading Security indexes and options contracts from June 1983 to 1986. In 1988, he established the Rand Management Corporation, an Investment Advisor registered with the SEC.
In 1989, Victor Sperandeo decided to sell the Hugo Securities Co. Inc. branches that dealt with securities. Flourishing in the trading of futures markets, he established himself as a registered Commodity Trading Advisor between 1989 until 1993.
Working with several companies gave Sperandeo extensive experience and knowledge. He conducted research on the stocks markets and eventually came up with useful findings such as the “1-2-3 Reversal”, “2B” Pattern, and the “Diversified Trends Indicator®” an indicator still relevant in the commodity market.
At that time, Mr. Sperandeo was a fully registered associated person, serving as a consultant and expert on futures for Futures Commission Merchant known as Rodman & Renshaw Inc., between 1994 and 1995. He also dealt with Trader Vic LLC as a Managing Member, a Commodity Trading Advisor and operator until his departure in November 2001.
2000 To Present
- Since their formation between 2000 and 2001 Victor Sperandeo served as CEO and president of EAM Partners L.P. and Alpha Financial Technologies, LLC.
- AFT is a respected financial engineering company specializing on futures-based indices research and development, focusing on indices that were created by Victor Sperandeo:
- The DTI (Diversified Trends Indicator)—launched in 2004, the commodity index focuses on long/short financial futures.
- The FTI (Financial Trends Indicator)-yet another DTI sub-index which is also a currency index and a long/short financial futures index.
- The CTI (Commodity Trends Indicator)—a DTI sub-index launched in 2004.
- The GERI (Global Equity Rotator Index)— a long-only global equity futures index that prioritizes the 5 most proficient indexes from 14 equity indices on a yearly basis.
- The FXTI or FX Trends Index—launched in 2010, the FTI is also a long/short currency futures index.
- The DTI, FTI and CTI indexes were Standard & Poor licensed from 2002 – 2009 and later referred to as the S&P Diversified Trends Indicator, S&P Financial Trends Indicator S&P Commodity Trends Indicator.
- As of 2009, AFT began to directly license its indices via providers and product developers, as well as to providers who can build and sell investment products to retail investors and financial institutions.
Apart from its financial systems, AFT patents were also of great value in the investment market. It has received 3 patents in the United States, 1 in Australia and 2 in the Bahamas. It also has a number of pending patents on financial products employing long/short indexes or indicators in concurrence with leverage. These aspects tend to add alpha at the same time reducing risk.
AFT has compiled a group of product issuers that are associated to its indexes including: Merrill Lynch, Credit Suisse, HSBC, Nomura, Macquarie Bank, UBS, Guggenheim Investments, Wisdom-Tree among others.
Under Victor Sperandeo’s watch, EAM has and continues to develop methodologies and principles that are readily available to the global financial community. EAM serves as an advisory partner to subsidiaries, and in its place provides the required services for portfolio management for qualified financial institutions.
In 2008 EAM was inducted into the Trader Hall of Fame by Trader Magazine and included on Ziad Adelnour’s list of top 100 Wall Streeters, one of the highest honors in the industry.
This material has been prepared by a sales or trading employee or agent of Dallas Commodity Company and is, or is in the nature of, a solicitation. This material is not a research report prepared by Dallas Commodity Company's Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.
The risk of loss in trading commodity futures contracts can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. You may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain a position in the commodity futures market.