Top ETF Manager on a Roll

" A learning thing ETS we go Robert I'm -- Stratton management still honor roll earlier this year Forbes dot com named ask Brad and management and -- for. Best managed ETF portfolio for 2008 so far this year after the managed account portfolios. Are up eight point 5% let's check in now with Robert -- founder about the management and threats the management rather. The CEO he's staying on top of this year Robert. -- what do you do it."

" What we're taking an active approach -- buy and -- works very well and -- economists we look at economic -- there's four distinct cycles. Expansion peak contraction -- trough. And our function is to try to identify what cycle -- I am not forecast identify what's actors are experience and -- and then build the portfolio around that. And then finally we try to put -- yes that have low correlations which other. We don't see any value and having a lot of the same things in a portfolio."

" I've heard a lot of but hedge funds are utilizing -- yes especially on the financial side of me. Should that concern the average investor was thinking about investing needs yet without."

" No I I actually think that creates liquidity and it also creates product development. Though the more people are using a product hedge funds and professional investors more likely the providers are going to create -- ads that fill a niche. And so as you see investment opportunities in specific sectors. It gives incentive for the companies to create exposure to those sectors all right so let's talk sectors what do you like right now in terms of the ETF universe I still like technology we like technology earlier this year I believe it's actually. I'm through with its recession. I just like the Biotech and healthcare sector kinda counter intuitive right here but even with the rallied at the IBB -- the Iowa. I HY of as there's still trading below what I think is that as a reasonable valuation so were weighted towards dollars and we also like a lot of corporate fixed income might ATF's as well."

" How do you analyze the ET apps as opposed to looking at stocks when you look at a stock at an average investor you can look at the multiple you can look at their earnings momentum. What do you look at specifically when you're looking for the right ETS."

" I'm the US that question for -- it's about employment trends. And I'll -- trends of the sectors adding jobs and making more stop and experience we literally look at the employment report we see where jobs are being editor lost. We try to time it was sector that has a core relating ET half and we purchased any -- then we see if the core lengths. The other parts of the portfolio."

" I want to just say to the viewers that's at 9000 the first time around the beginning of the here obviously some things that people are watching. In terms of what you're watching for trend -- no -- Where do things shake out here when we start to see growth in labor market yeah."

" I don't we'll see growth in labor market until much later in the year may be the beginning of next year. I think they'll be sort of a that's happened in slow growth. And I do believe will be entered recession eighteen months after this one has been. Finalized so be careful of the doubled that seal of bearish there well in the eighteen months I would got a long way to go before -- from from valuations that. Thank you Robert's time thank -- that's appreciate it."