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Odd Lots

The Important Lesson a Quant Manager Learned in 2020

Odd Lots

Bloomberg

Business, News, News Commentary, Investing, Business News

4.52K Ratings

🗓️ 21 January 2021

⏱️ 54 minutes

🧾️ Download transcript

Summary

It goes without saying that 2020 was a year like no other when it comes to the markets. A historic crash, and then a raging recovery, all set against the backdrop of a pandemic and deeply depressed economy. One implication of this is that trading strategies based on historic rules and patterns didn't perform particularly well in this environment. On this episode, we speak with Corey Hoffstein, a fund manager at Newfound Research, which employs trend following and momentum signals in its trading. He talks about what worked and didn't last year and what that says about overall market structure.

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Transcript

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0:00.0

Join us in New York on November 29th for the Bloomberg Canadian Finance Conference,

0:04.6

proudly sponsored by National Bank of Canada Financial Markets.

0:07.8

2023 marks the 11 year anniversary of our Canada focused event and continues the tradition of providing timely

0:13.8

insights and actionable strategies. We'll have senior government

0:17.1

officials from Saskatchewan, Quebec, British Columbia, Alberta and Ontario as well

0:21.9

as speakers from Northland Power, World Bank, Transolta, and many more.

0:26.0

Register at Bloomberg Live.com slash Canadian Finance slash radio. Hello and welcome to another episode of the Odd Lots podcast I'm Joe Weisenthall

0:46.3

and I'm Tracy Allaway. So Tracy it goes without saying and we really don't need to belabor the point at all that from a market's

0:57.1

perspective the last year has been I guess unprecedented.

1:01.3

Yeah, I think that's right.

1:03.2

When you say we don't need to belabor the point,

1:05.2

should I describe what we're talking about

1:07.2

or should we just move on?

1:08.4

I think we, you know, it's just this crisis,

1:12.2

this huge crash, this incredible rally that never seems to end in the middle of a

1:17.3

pandemic and so forth. It's just like there's no obvious historical analogy to what we've just seen that I can think of.

1:26.0

Well, I think what was really interesting about last year was that we basically saw an

1:30.1

entire economic and to some extent financial crisis and a recovery so a sort of

1:36.7

complete economic cycle all squeezed into less than a year.

1:43.0

And if you think, I mean, the trajectory of everything

1:46.0

was quite similar to the 2008 financial crisis.

1:49.0

You had the sharp market sell-off in March,

...

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