AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
The Disadvantages of Trend Following
In the 80s, there were some CTA's, especially some USDA's, so they were very successful. In the 90s and early 2000s, institution investors realized that trend following could be okay. And then what kind of happened is that trend following must start to be seen as an investment style instead of many different traders that do similar kinds of things and all of them doing well. It became a kind of the style rather than people deciding to invest with John Henry or Temple in those years. Investors decided to invest in trend following and then had to find which name to invest in. That didn't make things ultimately really better because the essence is that there is difference between those investment managers