
Trend Setters: The Mechanics of Trend-Following
Long Story Short
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Introduction
Otto von Hemert is director of core strategies at Man AHL and co-author of a couple of award-winning papers. Trends often arise when there's a big change in the macro environment, he says. It may start in one corner of financial markets, but then has ripple effects to other corners of the financial markets,. There's an initial underreaction and then trending type behavior in order for full reflection of the news.
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