Ep. 282: Kathryn Kaminski Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

Michael Covel

Business, Investing

4.6 • 732 Ratings

🗓️ 10 October 2014

⏱️ 49 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

My guest today is Kathryn Kaminski, the deputy managing director the institute for financial research (SIFR) Stockholm Sweden. She's also a contributor to CME Group. She earned her PhD at the MIT Sloan School of Management. At the MIT Laboratory for Financial Engineering, she conducted research on financial heuristics in collaboration with Professor Andrew W. Lo. Her new book, with Alex Greyserman, is "Trend Following with Managed Futures: The Search for Crisis Alpha."

The topic is Trend Following.

In this episode of Trend Following Radio we discuss:

Survivorship bias
Kaminski's background and upbringing
Convergent risk-taking strategies and divergent risk-taking strategies
Social networking as an example of risk
Apple as an example of convergent/divergent
The importance of failure
The efficient market hypothesis, the idea that trend following is "voodoo", and the lack of transparency in trend following
Critics of trend following
Kaminski's "ah-ha" moment with trend following
Why trend following works in times of crisis
The adaptive markets hypothesis
Looking at markets like ecologies
Divergence and "punctured equilibrium"
The process of going back 800 years analyzing trend following
The idea of black boxes
The acceptance of trend following

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.
0:33.5	Today on the show I have Catherine Kaminsky.
0:36.0	She is founder of Alpha K Capital LLC, a thematic fund of hedge funds focused on offensive strategies for tail risk management.
0:45.0	She is also a contributor to CME group.
0:48.0	She earned her PhD at MIT and worked closely with Professor Andrew Lowe.
0:56.8	Her new book is also out called Trend Following with Managed Futures, The Search for Crisis Alpha, written with Alex Gracerman
1:02.8	of ISAM. For those of you that recall, Alex has appeared on my show before, along with Larry
1:07.8	Height. I hope you enjoyed this conversation with Catherine.
1:18.3	I'm going to give you the opportunity to talk a little bit about yourself here in the
1:20.9	beginning, so for my audience, that might not be familiar with you and your work. But one of the
1:25.2	things I want to offer as a compliment right out of the gate
1:27.6	is that you and Alex, Alex Gracerman, your co-author for this new book, Trend Following with Managed
1:32.9	Futures, The Search for Crisis Alpha. What you have given me, as somebody who's written a few books
1:39.1	on trend following, is you have finally put to bed. I think for one of the biggest criticisms I've received over the years is,
1:46.8	Michael, you just ignore survivorship bias.
1:49.6	You've picked the lucky monkeys that happen to be banging on the keyboard,
1:52.8	and this trend following stuff is all no good.
1:54.6	And just look at that baseball owner in Boston.
	...

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