TTU142: The Contrarian ft. Roy Niederhoffer, President of R.G. Niederhoffer Capital Management
Top Traders Unplugged
Niels Kaastrup-Larsen
4.8 • 670 Ratings
🗓️ 10 April 2023
⏱️ 69 minutes
🧾️ Download transcript
Summary
Buckle up for a fascinating conversation with Roy Niederhoffer, President of R.G. Niederhoffer Capital Management, as he shares insights on managing a billion USD through short-term trading. Discover why he's chosen this approach and how he's overcome its challenges. You'll also gain valuable insights on human biases surrounding the Sharpe Ratio, the impact of an inverted yield curve on longer-term trend following strategies, and why Roy "has PTSD" from investing in the stock market. Dive deep into the drivers of short-term trading and learn why thinking like a trader is key to successful research. Plus, Roy offers a cautionary note on the dangers of machine learning. Don't miss this illuminating conversation!
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Episode Timestamps:
02:16 - Introduction to R.G. Niederhoff Capital Management
03:46 - Their investment philosophy
10:00 - A period of challenges
13:26 - Believing in change
15:45 - Who's Sharpe should we be concerned about?
23:02 - Looking back in time
30:42 - The role of short-term trading
38:56 - What drives short-term trading?
42:47 - Being smart with execution
46:09 - Dealing with the downsides
53:53 - Studying the markets
55:49 - The dangers of machine...
Transcript
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| 0:00.0 | When you look in a market, you can tell, oh, Roy's probably making a lot of money on this day, |
| 0:12.2 | or Roy's probably making a lot of money in this month. And all of my clients eventually |
| 0:16.7 | developed that, even though they have no idea exactly what's in my strategy, maybe even more so |
| 0:21.8 | than with Trendfeld, which sounds incomparbous, but it is nevertheless the case. And once you get |
| 0:28.5 | that idea for short-term trading, then it becomes very easy to keep in a portfolio. And I think |
| 0:33.5 | the burden of short-term managers is to provide clients that comfort. And it's a higher |
| 0:40.5 | bar than just, oh, stocks are up, so we're long stocks. So we made money because we're long. |
| 0:48.4 | Imagine spending an hour with the world's greatest traders. Imagine learning from their |
| 0:53.4 | experiences, their successes, |
| 0:55.0 | and their failures. Imagine no more. Welcome to Top Traders Unplugged, the place where you can learn |
| 1:02.2 | from the best hedge fund managers in the world so you can take your manager due diligence |
| 1:06.7 | or investment career to the next level. Before we begin today's conversation, |
| 1:11.3 | remember to keep two things in mind. |
| 1:13.3 | All the discussion we'll have about investment performance |
| 1:15.7 | is about the past, |
| 1:17.1 | and past performance does not guarantee |
| 1:18.9 | or even infer anything about future performance. |
| 1:22.1 | Also understand that there's a significant risk |
| 1:24.1 | of financial loss with all investment strategies, |
| 1:26.8 | and you need to request and |
| 1:28.0 | understand the specific risks from the investment manager about their product before you make |
| 1:32.7 | investment decisions. Here's your host, veteran hedge fund manager, Nealz Kostrup Larson. |
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