SI385: When Volatility Becomes the Signal ft. Katy Kaminski
Top Traders Unplugged
Concentrated Liquid Asset Universes vs Diversification
Katy shows narrow liquid-asset strategies can outperform in some years but underperform over long stretches versus diversified sets.
Katy Kaminski joins us to assess the early signals shaping markets in 2026. The conversation explores the resurgence of commodity trends, the role of volatility estimation, and why diversification across markets and speeds matters more than ever. Drawing on new research, they examine dispersion within the CTA universe, the limits of replication, and how volatility targeting quietly determines outcomes. From precious metals to currencies, from crisis alpha to geopolitical risk, this episode offers a grounded look at why trend following thrives during disruption and why regime change remains its natural habitat.
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Episode TimeStamps:
00:00 - Introduction to the Systematic Investor Series
00:39 - Weather disruptions and market perspective
02:31 - Precious metals and extreme commodity moves
04:28 - Gold, central banks, and monetary regime shifts
07:43 - Replication versus full CTA diversification
09:47 - Liquidity differences across metals
12:03 - Metals leading trend performance in 2026
15:01 - Multi-sector trends and diversification benefits
20:13 - Media attention and the return of trend following
23:29 - Research insights on speed and dispersion
31:44 - Trend speed and timing tradeoffs
40:59 - Market concentration and narrow universes
43:19 - Volatility estimation as a hidden driver
50:41 - Crisis alpha and regime change
59:53 - Geopolitical risk and future research themes
Resources discussed in this Episode:
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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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