SI207: Trend Following: The Perfect Portfolio? ft. Jerry Parker

Top Traders Unplugged

Niels Kaastrup-Larsen

Business, Business News, Investing, News

4.8 • 670 Ratings

🗓️ 27 August 2022

⏱️ 76 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Jerry Parker joins me for a raw conversation on Trend Following, the day after Jerome Powell spoke at Jackson Hole on fighting inflation and achieving economic stability. We also discuss the pros and cons of CTA/Managed futures replication strategies and the importance of investing in your own fund as a manager, the evolution of Trend Following and why Trend Following might be the Perfect Portfolio. We touch on different ways of diversifying your portfolio and why correlation is not always reliable friend. Lastly, we discuss an article by Morgan Housel on why it is important to identify the core principles (in our case of Trend Following) and how incentives are the strongest force in the world, the importance of having confidence whilst being humble and much more.

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50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE

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Episode TimeStamps:

00:00 - Intro

02:51 - Summary of the week

08:35 - Industry performance update

12:21 - Discussion about CTA/Managed futures replication strategies

26:19 - Aligning incentives as a manager

33:28 - Aspect article in Hedge Fund Journal

46:47 - Article by Cliff Asness on Pure Trend Following

51:33 - Crisis alpha vs the Perfect Portfolio

01:03:40 - Article by Morgan Housel on following Core Principles

01:11:15 - Confidence vs. Ability

01:14:33 - Thanks for listening

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PLUS: Whenever you're ready... here are...

Transcript

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0:00.0	You're about to join Neil's Kostrup Larson on a raw and honest journey into the world of systematic investing and learn about the most dependable and consistent yet often overlooked investment strategy's edition of the systematic investor series with
0:27.4	Jerry Parker and me, Niels Castellasen, where each week we take the pulse of the global markets
0:31.8	through the lens of a rules-based investor. Now, for those of you who are regular listeners to
0:36.2	our conversations, they are intended for
0:38.3	you to learn and grow as rules-based investors.
0:40.9	And if you're new to the show, we hope that today's episode will trigger your curiosity to
0:45.0	check out the back catalog and listen to the past episodes that you may have missed, like
0:49.4	last week's episode with Mark, where we discussed some of the nuances of Cliff Asnes' recent article
0:55.6	regarding the cost of being a pure trend follower, as AQR has experienced, as well as the
1:01.3	impact that inflation has on trend following, which of course is a very topical theme at the
1:07.2	moment. And I also want to encourage you, actually,
1:13.2	to check out the Wednesday episode with Jim Kassang and I,
1:15.9	where we, instead of having a guest on,
1:20.2	we decided to do a kind of a freestyle episode a bit and share some of our own views on the global macro environment
1:23.0	as it stands right now.
1:24.6	So if you missed any of those episodes,
1:26.6	I invite you to go back and check them out
1:28.3	right out after you finish today's episode
1:31.6	with me and Jerry.
1:33.0	Jerry, fantastic to be back with you this week.
1:36.0	How are things where you are?
1:37.3	How are things going?
	...

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