SI229: Managed Futures - The Ultimate Diversification Tool? ft. Andrew Beer

Top Traders Unplugged

Niels Kaastrup-Larsen

Business, Business News, Investing, News

4.8 • 670 Ratings

🗓️ 5 February 2023

⏱️ 68 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Today, Andrew Beer returns to the podcast for a conversation on Trend Following & Managed Futures more broadly, where we reflect on what happened in the first month of 2023 and the outlook for rest of the year. We also discuss why many investors started to panic in the last half of 2022 and why Managed Futures is such a powerful "companion" strategy, the recent change of sentiment to stocks and bonds and why we should sometimes just trust the evidence. We round things off with a deep dive into various ways to achieve optimal diversification and the value of trend following, why it is important to be tactical and put aside the idea of buying the dip, how narrative plays such a big role in the trend following space and much more.

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Episode TimeStamps:

02:11 - Reflecting on the month of January

06:36 - Performance of trend following this year so far

14:43 - Industry performance update

15:43 - Managed futures - the ultimate diversifier?

21:24 - Will stocks and bonds continue to move in tandem?

25:46 - Predictable diversification benefits

29:28 - The advantages of managers

41:40 - Why should managed futures work?

48:18 - Buy the dip?

54:31 - Sticking to the data

01:01:13 - Gunslingers in the ETF space

01:05:59 - Thanks for listening

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

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
0:07.2	and learn about the most dependable and consistent yet often overlooked investment strategy.
0:13.2	Welcome to the Systematic Investor Series.
0:26.7	Welcome or welcome back to this week's edition of the Systematic Investor series with Andrew Beer and I, Niels Kastrelarsen, where each week we take the pulse of the global markets
0:30.9	through the lens of a rules-based investor.
0:33.8	If you're new to the show, I hope that today's episode will trigger your curiosity enough to check out the back catalog and listen to the past episodes that you may have missed, like last week's episode with Alan, where we discussed if the markets are priced for perfection, how CTAs capitalize on people's behavioral biases, and what we learned so far from speaking to the best managers in the world in our
0:55.4	CTA series. Also, I would like to really encourage you to listen to the midweek episode where
1:00.8	Kevin was joined by Professor Perry Merling, where they discussed the fascination,
1:06.8	fascinating is what I meant to say, history of the US dollar and how it came about becoming
1:13.6	the world's reserve currency. Fascinating stuff, really. And of course, not to forget,
1:18.6	you really should listen to the extra episodes Alan and I are putting out in the last few weeks
1:23.3	where we talked to the largest CTA firms in the world. And I think it's probably the first time it's ever been done
1:30.0	where we're trying to capture all of their opinions and views
1:34.0	more or less at the same time.
1:36.2	So I hope you all enjoy that series as well.
1:39.8	Andrew, it is so great to have you back on the podcast.
1:42.6	How are you doing? How are things in sunny Florida?
1:45.2	Ah, things are terrific.
1:46.7	I'm down here for a big ETF conference.
1:48.4	So now they're having record cold in New York this weekend, so I'm very happy to be here.
1:54.2	Thank you for having me back.
1:56.2	It's great to be back.
	...

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