Ep. 256: Mike Harris Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

Michael Covel

Investing, Business

4.6 • 732 Ratings

🗓️ 14 July 2014

⏱️ 31 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

My guest today is Mike Harris, the President of Campbell & Company (3B+ AUM), the systematic trading firm started by Keith Campbell (Campbell was featured in Covel's first book Trend Following).

The topic is Trend Following.

In this episode of Trend Following Radio we discuss:

Systematic trading in the early 70's
Education about managed futures
Correlation with other markets and managers
Trading diverse markets
Focusing on data rather than the fundamentals
Why "commodities" and "CTA" are misnomers
Why Harris wouldn't fly down to Brazil to investigate fundamental information on the coffee market
Risk management, drawdowns, and taking small losses; dealing with uncertainty and helping clients to understand the uncertain nature of trading
How human emotion often gets in the way of profitable trading
The efficient market hypothesis and behavioral finance
Continuity and how that has been thought through at Campbell & Company
The Sharpe ratio and why it isn't the best way to look at systematic traders
Why being defensive is central to being a great absolute return trader

Jump in!

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I'm MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I'm proud to have delivered 10+ million podcast listens since 2012. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trend following are all passionately explored and debated on my show.

To start? I'd like to give you a great piece of advice you can use in your life and trading journey… cut your losses! You will find much more about that philosophy here: https://www.trendfollowing.com/trend/

You can watch a free video here: https://www.trendfollowing.com/video/

Can't get enough of this episode? You can choose from my thousand plus episodes here: https://www.trendfollowing.com/podcast

My social media platforms:
Twitter: @covel
Facebook: @trendfollowing
LinkedIn: @covel
Instagram: @mikecovel

Hope you enjoy my never-ending podcast conversation!

Transcript

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0:00.0	This is Trend Following Radio, where great thinking comes alive.
0:10.9	Nobel Prize winners, legendary traders, bestselling authors, and the pros that know what drive us irrational human beings.
0:21.2	I am your host, Michael Covel.
0:24.0	Not filtered, raw, honest.
0:27.3	That's my passion.
0:32.9	Today in this show I have Mike Harris.
0:35.4	Mike is the president of Campbell & Company.
0:37.6	The legendary systematic trading firm started by Keith Campbell,
0:41.6	Keith, who was featured in my first book, trend following.
0:45.4	Campbell & Company today has over $3 billion under management.
0:49.4	Mike brings the systematic wisdom.
0:51.4	Listen up.
0:52.3	I hope you enjoy.
1:03.6	Thank you. the systematic wisdom. Listen up. I hope you enjoy. If we look back, Campbell and Company,
1:15.6	started by Keith Campbell, systematic strategies launched in 1972, is there any public fund manager that goes back that far? Our research has shown that we've got the longest track record of a public commodity pool going back.
1:23.6	But it's certainly debatable. There's a lot of a couple people that came out in the early
1:28.0	70s. And so we just like to tell people that we were certainly one of the first.
1:33.2	There's no doubt about that. There could be one or two others, but you guys were a small
1:39.0	handful to say the least. Let me take you back, though, even though you weren't there at the time,
1:45.1	the thinking.
1:53.6	Because to put forward as an investment strategy in the early 1970s, a systematic strategy not based on fundamental information.
1:57.5	I know today you have other strategies along with your trendfinding component.
	...

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