Ep. 516: Wesley Gray Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

Michael Covel

Investing, Business

4.6 • 730 Ratings

🗓️ 2 January 2017

⏱️ 63 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

My guest today is Wesley Gray. He served as a Captain in the United States Marine Corps and taught as a finance professor at Drexel University. He earned an MBA and a PhD in finance from the University of Chicago and graduated magna cum laude with a BS from The Wharton School of the University of Pennsylvania. Wesley is founder of Alpha Architect, an asset management that delivers affordable active exposures for tax-sensitive investors. He has published four books including: “Quantitative Value,” “DIY Financial Advisor,” “Embedded” and his newest book “Quantitative Momentum.” He is a contributor to the Wall Street Journal, Forbes, and the CFA Institute.

The topics are his books Quantitative Momentum: A Practitioner's Guide to Building a Momentum-Based Stock Selection System and Quantitative Value: A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors.

In this episode of Trend Following Radio we discuss:

Efficient Market Hypothesis
Cross-sectional momentum
Time-series momentum
Trend following
Behavior
Career risk

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
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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.
0:27.4	That's my passion.
0:33.2	My guest today is Wesley Gray.
0:35.4	He is the CEO of Alpha Architect. What I love about Wes,
0:41.2	he's able to connect the academic to the real world. Our discussions today, wide-ranging,
0:48.7	but right in the heart of momentum, momentum, right at the heart of trend following. West has a great perspective,
0:57.1	and again, he's able to thread that needle and bring in the academic side and the real world side.
1:03.9	That's a real challenge today. His newest book is also out right now, quantitative momentum.
1:13.2	I hope you enjoy this conversation with Wesley Gray.
1:25.8	Wes, momentum. When did momentum? The idea of momentum, and you're going to need to explain
1:32.5	it some from your perspective over the course of this episode, when did momentum hit for you?
1:38.1	When did you go, oh, markets, trading, momentum, when did it hit? When did you know it was something?
1:45.4	Well, for me, just to step back a little bit, I start off with a formal brainwashing and value investing.
1:52.2	So, you know, I was a Bible thumping, Ben Graham, intelligent investor.
1:57.7	And if you've ever read that vein of literature books, you know, momentum, technical
2:02.8	analysis, this stuff is, you're insane to believe it. And then I was doing my dissertation at
2:10.6	Chicago there, you know, we have to read the papers. And I read Chagetitian Tipman 93. And I was like,
2:16.9	holy cow, all this brainwashing I've had that
2:20.4	you can't just use simple price signals to predict future returns is just factually incorrect.
	...

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