OI05: Is Trading Fewer Markets Actually Better? ft. Richard Liddle & Gareth Abbot
Top Traders Unplugged
Niels Kaastrup-Larsen
4.8 • 670 Ratings
🗓️ 21 February 2024
⏱️ 67 minutes
🧾️ Download transcript
Summary
In this episode, Moritz Seibert speaks with Gareth Abbot and Richard Liddle from Bowmoor Capital, a trend following firm based in the UK. Gareth and Richard explain why they decided to go against many trend followers and limit their investment universe to 21 markets – a “compact” portfolio – and why additional markets would likely dilute the return stream they aim to generate. We also speak about their portfolio construction process which includes the combination of 16 systems and results in what they call “smart pyramiding” in and out of positions. Finally, we touch on dynamic position sizing.
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Episode TimeStamps:
02:09 - Introduction to Richard Liddle and Gareth Abbot
05:19 - How did they get into investing?
09:43 - Why trend following?
13:55 - Solving the market puzzle
15:36 - How they designed their strategy?
18:46 - The reason for their market selection
24:18 - Why exactly 21 markets?
31:13 - How did they design their system?
39:47 - Why they don't trade hundreds of markets
42:08 - What timeframes and models do they work...
Transcript
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| 0:00.0 | That is essentially the diversification space, the risk space that we are building the portfolio |
| 0:12.8 | inside and looking at it that way. We can visualize every aspect of how we are building our heat, the risk that we're taking. |
| 0:23.6 | We can see the correlation. We can see, we can quantify every aspect of it. |
| 0:29.6 | And we have various ways that we control the heat inside that space. |
| 0:36.6 | Imagine spending an hour with the world inside that space. |
| 0:41.0 | Imagine spending an hour with the world's greatest traders. |
| 0:45.5 | Imagine learning from their experiences, their successes, and their failures. |
| 0:47.5 | Imagine no more. |
| 0:54.0 | Welcome to Top Traders Unplugged, the place where you can learn from the best hedge fund managers in the world, so you can take your manager, due diligence, or investment career to the next level. |
| 0:58.9 | Before we begin today's conversation, remember to keep two things in mind. |
| 1:02.8 | All the discussion we'll have about investment performance is about the past, and past performance does not guarantee or even infer anything about future performance. |
| 1:11.6 | Also understand that there's a significant risk of financial loss with all investment strategies, |
| 1:15.8 | and you need to request and understand the specific risks from the investment manager about their product before you make investment decisions. |
| 1:23.7 | Here's your host, veteran hedge fund manager, Niels Kostrup Larson. |
| 1:32.7 | Welcome to another episode in the Open Interest Series on Top Traders Unplocked, hosted by Moritz-Sebert. |
| 1:39.0 | In life, as well as in trading, maintaining a spirit of curiosity and open-mindedness is key, and this |
| 1:45.8 | is precisely what the Open Interest Series is all about. Join Moritz as he engages in candid |
| 1:52.3 | conversations with seasoned professionals from around the globe to uncover their insights, |
| 1:57.2 | successes and failures, offering you a unique perspective on the investment landscape. |
| 2:02.8 | So with no further ado, please enjoy the conversation. |
| 2:08.8 | Hi everyone, I'm Arit Seabird and I'd like to welcome you to another episode of open |
| 2:13.3 | interest on top traders on PUDD. Today, I'll be speaking withareth Abbott and Richard Lill from Baumore Capital, a UK-based |
... |
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