Episode description
Episode description
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.
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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:
- 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.
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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.