Each year lots of pundits like to remind/scare investors about the historic negative events that sometimes occur during the month of October…especially the 1987 crash. And like all humans, investors fear the risk of loss much greater then then joy of gain…so this narrative always seem to do the trick.
But it strikes me that things have changed this year, as I see more and more commentators and non trend following managers play this card on a regular basis.
“Trend Followers have failed on their mandate to deliver Crisis Alpha…”
is what I’m hearing (followed by a marketing statement about a strategy being offered that is able to make money in periods like February and Q4 2018).
I wonder why they say this…I’m sure I don’t need to spell this out to you!
But here is the deal. Trend Followers do not design their strategies with “a mandate to deliver Crisis Alpha” in mind…but rather to deliver strong long-term absolute returns.Read More
So needless to say, it was a challenging month for trend followers.
But lets just be clear about one thing…those shorter-term strategies that claim that trend following is too crowded and too slow and does not deliver enough convexity…did not do much better than their trend following cousins…and have certainly not delivered nearly the same return so far this year.Read More
“We do two of the hardest styles of investing that I am aware of.” – Alan Sheen (Tweet) Today on Top Traders Unplugged, I continue our conversation with Alan Sheen, talking about how and why he designed Dalton Street Capital’s investment strategy the way he did, and how it has performed compared to the market…Read More
“I learned everything I ever needed to know about systematic and quantitative investing even before I set foot in the field because systematic and quantitative investing, at the end of the day, is about discipline.” – Alan Sheen (Tweet) Today on Top Traders Unplugged, I’m speaking with Alan Sheen, Founder and CIO of Dalton Street…Read More
“Emotion overrides cognition pretty dramatically” – Daniel Crosby (Tweet) Welcome to Top Traders Round Table, a podcast series on managed futures brought to you by CME Group. On today’s episode, host Niels Kaastrup-Larsen continues his conversation with Dr. Daniel Crosby, Chief Behavior Officer of Brinker Capital, and the host of The Standard Deviation Podcast. Niels…Read More
The tables have turned! In this episode, Niels Kaastrup-Larsen becomes the first featured guest on Erik Townsend’s newest podcast – MacroVoices Spotlight! In this epsiode, Niels and Erik discuss Trend Following, the history of the Turtle Traders, Benefits of de-correlation and conditional correlation, how CTAs have been performing, and much more. Erik Townsend is a…Read More
“If we can follow just a couple of simple rules, we can overcome the behavioral errors which are the plague of so many investors.” – Daniel Crosby (Tweet) Welcome to Top Traders Round Table, a podcast series on managed futures brought to you by CME Group. On today’s episode, host Niels Kaastrup-Larsen speaks with Dr.…Read More
While Hurricane Dorian was building up to severe intensity before making landfall in the Bahamas…August also turned out to be a Category 4 or 5 when it comes to the intensity of strong trends and performance for the CTA industry.
Having gathered strength in the first 7th month of 2019, the momentum in many markets was further unleashed during the late summer month, a month that historically has proven to be full of surprises for the markets.Read More
The hot month of July was not as quiet as you would expect, when lots of investors put on their “email auto responder” saying, “…I’ll be out of the office with limited access to email…” – clearly they did have access to their trading terminals as market prices continued to move in a trend friendly and divergent fashion.Read More
When it comes to Behavioural Finance, a few people stand out in terms of their contribution to helping us all understand why and how it works. The intersection between Human Behaviour and Quantitative Investing can be difficult to understand for even the most sophisticated investors. Today, I want to share some really important insights from one…Read More