4.8 • 670 Ratings
🗓️ 31 July 2023
⏱️ 70 minutes
🧾️ Download transcript
Jerry Parker, Founder of Chesapeake Capital is perhaps the most successful of the famous group of Turtles, and today we discuss what he has learned from his 40+ years love affair with Trend Following, and how he has evolved his CTA program. We debate the challenges of using the Sharpe Ratio and what improvement really look like, how he uses volatility in his trend following process and the conflicts that can arise when working with clients. We also find out why Jerry believes you can be a good manager without using stops even if this is not how he does it, why he believes in trend following plus nothing, why he felt he had no choice than to launch an ETF with that name and much more.
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Episode Timestamps:
02:58 - Introduction to Chesapeake Capital
07:02 - Jerry's key trend following learnings
12:54 - Jerry's investment philosophy
17:02 - Being evolutionary without too much tinkering
22:09 - Advice on running a trend following program
26:48 - Their process for selecting parameters
32:15 - What does an improvement look like...if not a higher Sharpe?
39:25 - The role of volatility in the trend following process
44:41 - The challenges of working with clients
48:51 - What if everyone was a trend follower?
54:21 - Can you be a good...
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0:00.0 | 2020, 21, 22, I think we're just the beginning of getting back to sort of a normal situation |
0:13.0 | where all this diversification and these trend following strategies will be superior. |
0:18.0 | And that's one of my main goals in life is to see trend following elevated to |
0:23.0 | its proper position where it should be. |
0:26.1 | And we're just continually reminded of other managers, famous hedge funds that have these |
0:31.3 | really bad, horrible periods, and trend following just keeps cooking and going right along. |
0:35.8 | And so I think I agree with you that people underestimate how dangerous the world is and how crazy things can happen and how trend following is one of the best solutions. |
0:47.4 | Imagine spending an hour with the world's greatest traders. |
0:51.2 | Imagine learning from their experiences, their successes, and their failures. Imagine no more. |
0:57.0 | Welcome to Top Traders Unplugged, the place where you can learn from the best hedge fund managers in the world, |
1:03.0 | so you can take your manager due diligence or investment career to the next level. Before we begin today's |
1:09.0 | conversation, remember to keep two things in mind. |
1:12.3 | All the discussion we'll have about investment performance is about the past, and past performance |
1:16.9 | does not guarantee or even infer anything about future performance. Also understand that there's |
1:22.1 | a significant risk of financial loss with all investment strategies, and you need to request |
1:26.7 | and understand the specific |
1:28.3 | risks from the investment manager about their product before you make investment decisions. |
1:33.1 | Here's your host, veteran hedge fund manager, Nealz Kastrup Larson. |
1:42.6 | Hey everyone, and welcome to another edition of Top Traders on Plot, where today Alan Don |
1:47.0 | and I are joined by Jerry Parker, who is the founder and the chairman of Chesapeake Capital |
1:50.8 | as part of our mini-series focusing on the one investment strategy that beat everything else in |
1:55.8 | 2022, namely trend following and managed futures more broadly. First off, Jerry, it is great to have you back on the podcast, |
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