“These are literally billion dollar questions. If you could answer any of these questions to any degree of satisfaction, you could put the rest of us out of business.” - Robert Sinnott (Tweet)
In our continued conversation with Robert Sinnott, Katy Kaminski and I dive into why AlphaSimplex has been so successful, why Robert values transparency in his firm so highly, and what he advises for new and rising-star investors. He goes deep into what he is excited about and afraid of with managed futures, and what he’s looking forward to accomplishing with AlphaSimplex in the future.
Thanks for listening and please welcome back Robert Sinnott.
In This Episode, You'll Learn:
- Why AlphaSimplex maintains a pure trend program
“[Investors] want that consistency of process, they want that consistency of mandate, they want that consistency of understanding.” - Robert Sinnott (Tweet)
- What problems in the trend following space Robert hopes to solve
- The challenges that AlphaSimplex deals with on a regular basis
- What factors have given AlphaSimplex it’s success
“There will be constraints to how big your portfolio can be, and I will say that our fund cannot be anything close to the size of the really large firms in this space.” - Robert Sinnott (Tweet)
- Why Robert holds transparency in such high regard
- How the models Robert uses employ smart long-term and short-term assessment and why
- When your size as a firm hurts your performance
“Market distributions are not normal. Those fat tails exist, and they can surprise you.” - Robert Sinnott (Tweet)
- What about managed futures makes Robert the most excited
- The things about managed futures that keep Robert up at night
- Why the models you are reading about are wrong
“If you want to be successful, you have to be humble, you have to take what the market gives you, and you have to learn and adapt and adjust to that state of affairs, not the one that you want to happen to be the case.” - Robert Sinnott (Tweet)
- Robert’s advice for young and rising star investors
- Why Robert believes the right question can often more important than the answer
Resources & Links Mentioned in this Episode:
- Learn more about Joe Blitzstein's "Introduction to Probability"
- Check out Robert Carver's episodes on TopTraders Unplugged as well as his book "Systematic Trading: A unique new method for designing trading and investing systems"
- Find out more about my co-host Katy Kaminski's "Trend Following with Managed Futures: The Search for Crisis Alpha"
Connect with AlphaSimplex:
Visit the Website: www.alphasimplex.com
Call AlphaSimplex: +1 617-475-7100
E-Mail AlphaSimplex: firstname.lastname@example.org
Follow Robert Sinnott on LinkedIn
“Managed futures has gone through every interesting period in the recent past. It hasn’t had very strong performance, but it has had a few instances where equity markets actually fell, and managed futures performed quite well.” - Robert Sinnott (Tweet)