Today, we are joined by Andrew Beer to discuss why the current surge in Cocoa prices really is a big deal for our industry, but how CTAs have been selling it this year, against many main stream media reports. We also dig into how the strong performance in Q1 2024 is helping Trend Following making its way into more Model Portfolios and the existential crisis that we are seeing in the Model Portfolio world. We explain how the narrative around trend following is changing and why replication strategies are becoming less radical. And we wrap up our conversation touching on what the optimal allocation to trend following should be based on the latest publication from Man Institute, the challenges of dealing with unrealistic expectations in the trend following space and much more.

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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:

01:16 - What has been on our radar recently?

05:38 - Industry performance update

06:49 - What is the big deal with Cocoa?

11:49 - What causes the rising Cocoa prices?

13:56 - A fantastic start to the year for trend following

16:58 - Industry performance update continued

18:12 - Q1, Peter: What percentage of your liquid net worth do you have invested in DBMF?

22:05 - What does Q1 2024 mean for CTAs?

30:51 - A period of normalcy

34:02 - A change in the trend following narrative

42:54 - Are replication strategies becoming less radical?

46:22 - Stacking returns - a good or bad idea?

52:35 - Honey, I Shrunk the Trend-Following (paper from Man Institute)

57:08 - Finding the optimal allocation

01:04:27 - Niels' different perspective on a trend following allocation

01:07:11 - Different allocations for different situations?

01:11:10 - Too old for unrealistic expectations

Resources discussed in this Episode:

LINK SI290: Honey, I Shrunk the Trend-Following | Man Institute

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PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:

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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

Disclaimer

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