What do you do when you’ve already done everything there is to do in trend. Managed billion of dollars: check. One of first to run a trend following mutual fund: check. Trend following on individual equities:
check. You push the envelope again, and convince the folks that create ETFs that you actually can pack your fully diversified equities plus futures portfolio into an ETF wrapper. On this episode of The Derivative, we sit down with the legendary Jerry Parker, a former Turtle Trader who’s newest effort is an ETF product called ‘Trend Following Plus Nothing’.
Jerry and Jeff explore a wide range of topics, including whether multi-billion CTAs sold their (trend) souls to get there, just why nobody really tries to trend follow on individual equity names. Seeing a green light when they tell you it can’t be done. Jerry also opens up about finding the perfect balance of personal risk and mental fortitude to achieve success in trend following while sharing some personal anecdotes, including his love for pet birds.
Discover the power of trading components instead of an index of components, the impact of Fed limits on trend, and the intricacies of volatility targeting (hint: Jerry doesn’t believe in it). We'll also delve into the art of portfolio construction, the virtue of trend following impatience, the true essence of trend following as an inflationary hedge, and so much more — SEND IT.
Chapters:
00:00-02:00=Intro
02:01-04:50= No birds allowed on Long Island, NY
04:51-16:38= The journey creating the new ETF needed diversification
16:39-30:02= Replication – what’s your limit?
Hard=Simple/Simple=Hard
30:03-41:45= Market Makers, Outlier Moves, and what’s deserving of your portfolio
41:46-48:50=Embracing the Trend Following philosophy
48:51-01:00:02= The narrow road taken
01:00:03-01:03:29= Trend following+nothing
From the episode:
The Swiss(Franc) isn’t all that neutral – blog post
Trend Following Turtle Tails (and Tales) with Jerry Parker - podcast
Check out our Trend Following whitepaper!
Follow along with Jerry on Twitter @rjparkerjr09 and visit ChesapeakeCapital.com for more information!
Don't forget to subscribe to The Derivative, follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2, or LinkedIn , and Facebook, and sign-up for our blog digest.
Disclaimer: This podcast is provided for informational purposes only and should not be relied upon as legal, business, or tax advice. All opinions expressed by podcast participants are solely their own opinions and do not necessarily reflect the opinions of RCM Alternatives, their affiliates, or companies featured. Due to industry regulations, participants on this podcast are instructed not to make specific trade recommendations, nor reference past or potential profits. And listeners are reminded that managed futures, commodity trading, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. For more information, visit www.rcmalternatives.com/disclaimer
