TTU14: “You’re going to make a lot of money doing this…” ft. Jerry Parker – 2of2

Top Traders Unplugged

Niels Kaastrup-Larsen

Business, Business News, Investing, News

4.8 • 670 Ratings

🗓️ 16 July 2014

⏱️ 68 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Today we will continue our conversation with Jerry Parker the founder of Chesapeake Capital and widely known as the most successful Turtle ever.

After wrapping up his position with Richard J. Dennis as a famous “Turtle,” he went on to start his own asset management firm, Chesapeake Capital Corporation.

In this episode we discuss the evolving CTA industry and the story of Chesapeake. It’s a powerful story from one of the most successful people in the industry. We really hope you enjoy it.

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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:

How the research and complexity of systems has a backwards effect to making money
Challenges with entering stock markets with CTA strategies
Why counting the trades and analyzing sample size is what most investors forget to ask when seeking fund managers
Where the CTA managers have failed investors
How Jerry Parker handles emotions during drawdowns
Why markets have changed so that longer term focus has proven more successful
Learn about the philosophy of “The Markets are the Heroes”
Important lessons from a long, successful career in the CTA industry
What is it that keeps investors from Turtle CTAs and choose larger financial organizations
Why we see a skewed distribution towards profitability of long side trades and short side trades
The key legacy traits left behind by the Turtles and if the experiment could be replicated now
Why Jerry Parker’s contribution to the CTA space will be that he sticks with the plan and be the last one going down with the trend following ship
Lessons for upcoming CTA managers from Jerry Parker
Debunking trading cliches like, “you never go broke taking a profit” and “exits are more important than entries”
Personal habits that have contributed to Jerry Parker’s success
How Jerry Parker would start if he were to start all over again

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Resources & Links Mentioned in this Episode:

Ray Dalio – Bridgewater Capital
Learn about Jerry Parker’s Acting “Career” on his IMDB page

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.

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Transcript

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0:00.0	You're listening to Top Traders Unplugged, episode number 014, where I continue my conversation with Jerry Parker, founder and president of Chesapeake Capital.
0:11.9	This episode is sponsored by Saxo Bank and Swiss Financial Services.
0:17.0	Welcome back to Top Traders Unplugged, where the best traders in the world come to share their experiences, their successes, and their failures.
0:25.1	Let's rejoin the conversation with your host, veteran hedge fund manager, Niels Kastra Plarsen.
0:49.8	That's a really good point because actually without naming names, we've actually seen an example of that of a multibillion dollar CTA being named, you know, the best in the world. And the subsequent 12 months was actually not so great.
0:53.8	So it really does occur.
0:56.1	So I think that's a very important point.
0:58.4	And in terms of investors in general,
1:01.4	I mean, most people nowadays and certainly, you know, in 2014,
1:06.7	they don't really appreciate or like the sort of systematic trend following strategies.
1:12.7	What is it in your view that they don't understand,
1:16.5	that they don't get or can't get their head around about what, you know, these strategies do?
1:22.8	I think the biggest complaint that people have now is not enough stocks.
1:29.3	And I think that CTA has made a mistake by not having a stock only fund or having their
1:37.3	diversified portfolio have a 25 or 30% equity component to it.
1:43.3	But I guess there is some, also I think I have come across people who don't like systematic
1:51.5	trading.
1:53.7	But I do think that another thing too is that people desire complexity from their managers
2:01.0	and certainly from our point of view
2:03.5	being sort of a trend following plus nothing
2:05.8	shop, you know, trend following by itself
2:10.9	and try to emphasize to people
	...

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