TTU42: Why You Need this Trading Strategy TODAY ft. Kathryn Kaminski of AlphaSimplex – 2of2
Top Traders Unplugged
Niels Kaastrup-Larsen
4.8 • 670 Ratings
🗓️ 6 November 2014
⏱️ 66 minutes
🧾️ Download transcript
Summary
Welcome to Part 2 of our conversation with researcher and co-author of one of the definitive books on trend following. In this conversation, we dive into the the models that she used in writing the book, as well as her thoughts regarding risk management, what you should be asking a manager during due diligence, and what the future holds for the managed futures industry.
-----
50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE
In This Episode, You’ll Learn:
- What Kathryn looks at when evaluating the track records of managers.
- Her thoughts on the recent performance of trend followers.
- About price range compression.
- If she has a favorite statistic to look at when analyzing a manager.
- How she and her co-author came up with the trading strategy that they use in their book.
- Why the exit from a position is just as important as the entrance.
- What trend leakage is.
- Her views on how inflation and other environmental changes affects trend following strategies.
- About diversification.
- About risk management; how Kathryn defines risk and what is important to look at in risk management.
- Kathryn explains the topics of hidden and unhidden risk.
- What kind of drawdowns should be expected from a trend following model.
- A discussion of the drawdowns that trend followers have experience in the last few years.
- Seeing drawdowns as a buying opportunity.
- How to detect if a manager’s models and system has stopped working.
- The biggest challenge for the CTA industry right now.
- What she would ask of David Harding.
- What questions investors should be asking of managers when doing their due diligence.
- What personalities traits a good trend following manager should have.
- Her thoughts on regulation, especially for smaller managers.
- What her plans are for the future and how she sees the managed futures industry going forward.
-----
Resources & Links Mentioned in this Episode:
- Kathryn’s book is: Trend Following with Managed Futures.
- Is this Time Different? Trend Following and Financial Crisis.
- Following the Trend
- Outlier
- David and Goliath
- Lean In
- Kathryn’s TED talk on Convergence and Divergence.
Transcript
Click on a timestamp to play from that location
| 0:00.0 | I'm very friendly and very approachable person, but I actually used to play college hockey. |
| 0:09.6 | So women's ice hockey. |
| 0:12.1 | So whenever I'm in a tough situation and I've got that smile on my face, I just think about |
| 0:17.9 | Katie, put the helmet on. |
| 0:20.3 | So I tell myself to put my hockey helmet on, |
| 0:22.6 | and then I sort of get in that zone. |
| 0:26.6 | I played hockey in college as a previous figure skater. |
| 0:31.6 | So I'm very eloquent, but I love that, you know, |
| 0:34.6 | sort of be, I have a tough edge to me as well. So that's what most people don't know. |
| 0:41.2 | So sometimes we meet people who appear to us in one way, but once we get to know them, |
| 0:47.1 | they are in fact very different. |
| 0:49.5 | Someone who, when allowed goes into their creative cave, spending months, if not years, pursuing their |
| 0:57.0 | quest, only to emerge with the work of genius that may change the way the world perceives |
| 1:03.7 | a particular subject. Well, that is what we're talking about in today's episode of Top Traders Unplugged. |
| 1:11.9 | Welcome back to Top Traders Unplugged, where the best traders in the world come to share |
| 1:16.5 | their experiences, their successes, and their failures. Let's rejoin the conversation with your |
| 1:21.6 | host, veteran hedge fund manager, Niels Kastrop Larson. |
| 1:41.5 | Now, you mentioned the word track record, and I just wanted to ask from your perspective, sort of from a resource-oriented view, track records are difficult. |
| 1:48.2 | Some of them are very long, but clearly we know that the way strategy starts is certainly |
| 1:54.7 | not the way it operates today. |
| 1:56.5 | So there is this evolutionary element which you can be very hard to grasp as an investor. |
| 2:03.2 | What do you think is important to look at when you look at a track record? |
... |
Please login to see the full transcript.
Disclaimer: The podcast and artwork embedded on this page are from Niels Kaastrup-Larsen, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of Niels Kaastrup-Larsen and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2025.