TTU100: Being Transparent With Your Clients ft. Robert Sinnott of AlphaSimplex – 2of2

Top Traders Unplugged

Niels Kaastrup-Larsen

News, Business News, Business, Investing

4.8 • 712 Ratings

🗓️ 19 April 2018

⏱️ 39 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

In our continued conversation with Robert Sinnott, Katy Kaminski and I dive into why AlphaSimplex has been so successful, why Robert values transparency in his firm so highly, and what he advises for new and rising-star investors. He goes deep into what he is excited about and afraid of with managed futures, and what he’s looking forward to accomplishing with AlphaSimplex in the future.

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

In This Episode, You’ll Learn:

Why AlphaSimplex maintains a pure trend program
What problems in the trend following space Robert hopes to solve
The challenges that AlphaSimplex deals with on a regular basis
What factors have given AlphaSimplex its success
Why Robert holds transparency in such high regard
How the models Robert uses employ smart long-term and short-term assessment and why
When your size as a firm hurts your performance
What about managed futures makes Robert the most excited
The things about managed futures that keep Robert up at night
Why the models you are reading about are wrong
Robert’s advice for young and rising star investors
Why Robert believes the right question can often more important than the answer

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Resources & Links Mentioned in this Episode:

Learn more about Joe Blitzstein’s “Introduction to Probability”
Find out more about my co-host Katy Kaminski’s “Trend Following with Managed Futures: The Search for Crisis Alpha”

Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.

IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.

And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.

Learn more about the Trend Barometer here.

Send your questions to info@toptradersunplugged.com

And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.

Follow Rob on LinkedIn

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PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:

1. eBooks that cover key topics that you need to know about

In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. Click Here

2. Daily Trend Barometer and Market Score

One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! Click Here

3. Other Resources that can help you

And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. Click Here

Disclaimer

Transcript

Click on a timestamp to play from that location

0:00.0	I think that managed futures continues to go through this constant evolution where new edges, new ideas, new behaviors of markets come out.
0:13.0	And that is the whole game. That is what wakes you up in the morning. That is what's challenging, that is what gives you ulcers at night.
0:25.7	It's how are the market participants causing that aggregate macro behavior to change.
0:30.6	And that ever-newness is what makes this industry interesting.
0:36.9	Welcome back to Top Traders Unplugged, where the best traders in the world come to share their experiences,
0:38.2	their successes, and their failures. Before we begin today's conversation, remember to keep two
0:43.4	things in mind. All the discussion we'll have about investment performance is about the past,
0:48.3	and past performance does not guarantee or even infer anything about future performance.
0:53.5	Also understand that there's a significant
0:55.3	risk of financial loss with all investment strategies, and you need to request and understand
1:00.3	the specific risks from the investment manager about their products before you make investment
1:04.8	decisions. Now let's rejoin the conversation with your host, veteran hedge fund manager,
1:10.1	Neil's Kastra Blercson.
1:12.5	Questions slash observations, which you may or may not agree with. So first was just a question.
1:21.3	So do you use machine learning, you know, throughout the program? I mean, would you say it's a
1:26.7	machine learning trend following strategy is, you know, throughout the program? I mean, would you say it's a machine learning,
1:28.6	trend following strategy, you know? No, I wouldn't. We have a portion of our portfolio,
1:35.7	about 40% of the risk of the portfolio are in machine learning, or at least partially informed
1:41.9	with my machine learning. And to be specific, what I'm saying is 40% of our portfolio is composed of trend signals
1:49.2	that are then differentially weighted based on the outputs of these machine learning tools.
1:57.0	And I should again say that these machine learning tools are not neural networks.
2:01.4	They are things like decision trees.
	...

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