For those of us who have been on the manager side for a while, we know that investors love

to analyze decades of performance data before deciding which manager they're going to invest

with. And that makes a lot of sense. But we also come across investors who subsequently

redeem based on just a year or two's worth of data after they invested,

which is usually just down to bad luck or unfortunate timing.

Of course, this mismatch in the length of data it takes to get in, as opposed to get out of their

investment, does not seem logical.

But it kind of ties into the short conversation I want to share with you today where I

discussed the role and the importance of track records and back tests with Scott Billington.

We also ended up discussing a very interesting twist to their research, which led them to abandon

taking any short trades in their model. So sit back and relax and enjoy this unique short

clip from a past episode with Scott. And if you would like to listen to the full conversation,

just go to TopTraders on Plug forward slash 25 and also forward slash 26.

Now, track record, we've touched a little bit upon the track record, but what I'd love to do

is to ask you how one should read your track record

because we all know that strategies evolve over time and therefore in a sense one could say

that actually a track record, sure, it shows that you've survived, it shows that you

have had some innovation, but I think sometimes people get maybe a little bit fooled to believe

that a track record is a great indication of what the future is going to look like because they

don't really know what changes have happened along the way

in the model. So in some ways one could say that maybe it's better to look at a back test of the

current model when you look at a manager. Maybe that would say more about, you know, the future. I don't

...