We’re joined today by Rob Carver to discuss how quant managers compared to discretionary managers in 2020, Winton Capital’s underperformance and resulting loss of AUM, the pressure for successful Trend Following firms to expand into different investment styles, why March & December 2020 were generally the best for Trend Followers despite being so different, how a portfolio combining a few historically successful Trend Following firms has proven to be a very potent investment strategy, navigating negative interest rate environments, how to look at Sharpe Ratios effectively, and how to calculate the ‘Serenity Ratio’ of various strategies.

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50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE

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Episode TimeStamps:

00:00 – Intro

03:07 – Macro recap from Niels

03:59 – Weekly review of performance

47:20 – Q1; Michael: How many truly diversifying instruments are there, globally?

54:42 – Q2; Bruno: As a futures trader, how do you recommend I manage the cash part of my portfolio?

01:02:30 – Q3; Kyle: What are your thoughts on scaling in and out of positions?

01:08:46 – Q4; Craig: How can Trend Following take advantage of a ‘risk aversion’ environment?

01:14:37 – Benchmark performance update

01:08:45 – Recommended listening or reading this week: Matt Levine’s articles Bloomberg, The RInger Podcast: ‘Gamblers’ & Tim Harford’s Cautionary Tales Podcast on the COVID Vaccine

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PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:

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2. Daily Trend Barometer and Market Score

One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! Click Here

3. Other Resources that can help you

And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. Click Here

Disclaimer

SI122: Quant vs Discretionary Investing ft. Robert Carver