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Henry has been researching stocks for many years, but stocks have a low priority since JWH has done so well in the futures niche. Henry says the firm will introduce equity trading as a separate endeavor and will be a different type of stock investor/manager.

The new endeavor will apply what they've learned in the financial markets over the past 20 years to specific equity portfolios. Henry explains, "We will certainly specialize in defensive methodologies that do not have a bias to either the long or short side. Our focus will be on using our basic philosophy that you cannot predict anything and therefore trend following is the most prudent way to invest. We will invest in particular groupings of equities and have a much larger number of stocks in a portfolio than most managers. We will not try to predict which particular stocks or sectors are going to do well. We would rather evaluate select stocks over the long term based on their trends and volatility."

Henry believes the long-term benefits of stock ownership are not in picking certain stocks that will outperform the market. He believes that if you choose a large enough number of stocks based on their characteristics rather than promise, you can make long-term profits long and short in much the same way insurance companies make money by insuring a very large number of individuals. This will enable them to make money in up and down markets, but the primary benefit of their large-diversification nonpredictive approach will be to mitigate the effects of being long only the S&P 500, for example.

ANALYTICAL WHIZ

Born in Quincy, Illinois, in 1949, Henry spent most of his childhood in Forrest City, Arkansas, where his father owned some farms. When John was 25, his father died and he took over his family's 2,000-acre farm and taught himself hedging techniques. He began speculating in corn, wheat, and soybeans. He eventually became a commodity trading adviser. He started his firm in 1981 with headquarters in Newport Beach, California. The headquarters then moved to Connecticut in 1989. That year, Henry moved to Boca Raton. The Connecticut office closed in 2000.

He has been quoted as saying he has average intelligence and a knack for numbers.2 Philosophy has always fascinated him. As a child,