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Top Traders Unplugged

TTU35: The Advantages of Being a Systematic Trader ft. Chris Cruden of Insch Capital Management – 1of2

Top Traders Unplugged

Niels Kaastrup-Larsen

Business, Business News, Investing, News

4.8670 Ratings

🗓️ 29 September 2014

⏱️ 70 minutes

🧾️ Download transcript

Summary

Our next guest was a British Army Officer and moved to South Africa before finding a career in the financial markets. He is now the CEO of his Managed Futures firm and has worked with some of the industry’s most influential companies and people, including Dean Witter and AHL. The story of his career’s beginnings and the lessons he used to become a systematic trend follower are unique and insightful. You’re sure to learn a lot from this episode.

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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 Chris came to work with Dean Witter, one of the leading players in the industry back in the 1980’s & 90’s.
  • About his days working for AHL in the early 90’s.
  • How his career started off as a British Army officer.
  • His time in Africa after leaving the army –  finding himself in Rhodesia (now Zimbabwe).
  • About his first job at Syfrets Trust bank in South Africa as a Gold analyst.
  • How he came to do business with Dean Witter Reynolds and after a few years why they hired him.
  • After the 1988 crash he found himself back in London and joined AHL.
  • In 1993 he went back to New York joined with Robert M Tamiso, a mentor to him.
  • Why he looked for a market that was not overcrowded and easily spooked, which was the inter-bank foreign exchange market.
  • What AHL was doing in the beginning of the company.
  • Why he started trading currencies early on.
  • How Bob Tamiso was successful and the way he carried himself that made him successful.
  • Why Bob Tamiso’s best advice was to always “show up”.
  • About Chris’ golf playing and his ties to Scotland.
  • His routine at work and why being a systematic trader makes him boring and bad at marketing, but helps him sleep at night knowing they are going to “show up” the next day.
  • About Chris’ goal with his work and why he is happy with the size of his firm and why growth is not the prime focus.
  • How he has such low staff turnover and why he likes to work with young people who have never worked anywhere else in the financial world.
  • What matters when discussing a firm’s track record and how his programs are setup.
  • The building blocks of their trading program and how the money they’ve made has historically come mainly from interest rate differentials.
  • What the environment has been like for a currency program in the last 5 years.
  • Why he believes the current intervention by The Fed is not so substantially different that his model won’t be able to see good returns in the future
  • How he designed his program and what its objective is.
  • What currencies he trades and how he trades them.
  • Why volatility has been so low but why he sees that it is coming back and why it’s a good thing for his models.

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Transcript

Click on a timestamp to play from that location

0:00.0

You're listening to Top Traders on Plot, episode number 035, with Chris Cruden, founder and CEO of Inch Capital Management.

0:11.2

This episode is sponsored by Swiss Financial Services.

0:15.3

Imagine spending an hour with the world's greatest traders.

0:18.9

Imagine learning from their experiences, their successes, and their failures.

0:23.4

Imagine no more.

0:25.2

Welcome to Top Traders Unplugged, the place where you can learn from the best hedge fund

0:29.7

managers in the world so you can take your manager due diligence or investment career

0:34.4

to the next level.

0:36.0

Here's your host, veteran hedge fund manager, Niels Kastrop Larson.

0:47.5

Welcome to another episode of Top Traders Unplocked.

0:50.8

Thanks so much for tuning in today.

0:53.2

I know how valuable your time is, so I'm grateful

0:55.9

for you spending some of it here with me. I also want to thank you for sharing the podcast with

1:02.0

your friends and colleagues. It really does help me expand the reach of the podcast so more people

1:08.2

can learn from the amazing stories of my guests.

1:12.3

On today's show, I'm talking to Chris Cruden, founder and CEO of Inch Capital Management.

1:19.5

Chris has a long career working for some of the leading firms within the alternative investment

1:25.3

business, such as Dean Whitter back in the 80s and

1:29.0

AHL in the early 90s. And he has crossed path with many of the legends of our industry.

1:37.5

But perhaps the biggest influence in terms of mentorship came from the years where he worked

1:43.6

with Bob Tamiso, who helped Chris align himself

1:47.4

with trading and how he defines himself. Having said that, Chris shares with me that all of the

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