SI261: The Biggest Story in Asset Allocation ft. Nick Baltas
Top Traders Unplugged
Hedge Fund Behavior and Specialist vs CTA Trading
The chapter discusses the behavior of hedge fund managers during the Bitcoin craze and the debate between specialists and CTAs in trading. It also explores the impact of order flows, correlations, and trading activity on CTA performance.
Today Nick Baltas and I embark on a journey through the shifting tides of investment strategy. For decades, equities have reigned supreme as the primary source of portfolio returns, while bonds played a crucial role as diversifiers. But over the past two decades, something intriguing has happened, and the dynamic between these two asset classes has evolved in ways we've never seen before. Stay tuned as we unravel the fascinating story of this transformation and explore what it means for modern investors. We also discuss what a leading Trend Follower describes as what really determins absolute returns in a trend following strategy...and you may be surprised of what it is.
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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:
01:07 - What has caught Nick's attention recently?
03:02 - Industry performance update
04:30 - Q1, Corey: If an investor is heavily weighed equities, are they better off with trend following providers that don't include equities as one of the utilized asset classes
10:31 - How model portfolios can benefit from trend following
19:02 - A Changing Stock-Bond Correlation (AQR Paper)
23:50 - How structural inflation can impact the stock-bond correlation
27:46 - Illiquid alternatives and commodities as diversifiers
35:27 - Significant shifts in the asset allocation space
38:14 - Is cash better than bonds?
41:40 - Paper from Transtrend
47:15 - What really drives the absolute return in a trend following portfolio
52:23 - Network Momentum across Asset Classes (Oxford-Man Institute paper)
57:08 - Thanks for listening
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PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:
1. eBooks that cover key topics that you need to know about
In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. Click Here
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
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