In partnership with:
CME Group

62 Why Huge Market Shifts Are Great Reminders with Scot Billington of Covenant Capital Management

“If I was proud of something, it’s that we lost very little during the bad periods.” – Scot Billington (Tweet)

In this Year End Review, we discuss the major events and unexpected market trends in 2014 as well as the major Swiss Franc move at the start of 2015. Scot Billington discusses his firm’s performance what they learned from their losses and gains, and how they evolved their models. He also talks about why they were able to keep losses low in 2014.

Thanks for listening and please welcome our guest Scot Billington.

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In This Episode, You’ll Learn:

  • An overview of what happened in 2014 and where they made money.
  • Which factors contributed to profits in 2014 and which factors were the laggards.
  • Dissecting the market effect of sliding oil prices in 2nd half of 2014 and the “un-pegging” of the Swiss Franc to the Euro.
  • Evolving perspectives on risk management in response to events of 2014.

    “Correlations are something people use a lot and often improperly. They can be encouraged to cause someone to take more risk.” – Scot Billington (Tweet)

  • Deconstructing the Optimal Program and how to mitigate risk in higher leverage environments.
  • Actions taken to keep a typical program or an Optimal Program from going to zero.
  • Changes in client perspectives of a CTA strategy no one predicted would do so well a year ago.
  • What Scot Billington would wish for in 2015.

Resources & Links Mentioned in this Episode:

Listen to 2 hour-long episodes of Scot on this podcast here and here.

This episode was sponsored by Swiss Financial Services:

Connect with Covenant Capital Management:

Visit the Website:

Call Covenant Capital: +1 (615) 678-6742

E-Mail Covenant Capital:

Follow Scot Billington on Twitter.