TTU146: The value of Unpredictable Alpha ft. Anthony Todd
Top Traders Unplugged
Exploring the Role of AI and Alternative Data in Investments
Exploring the impact of AI and alternative data on investment strategies, emphasizing the importance of a hypothesis-driven approach and the utilization of machine learning models while safeguarding intellectual property.
Today, we are delighted to be joined by Anthony Todd, Co-Founder & CEO of Aspect Capital, for an insightful discussion on the role of systematic trading and trend following in today’s economy. We also discuss what has driven Aspect Capital’s shift towards developing multiple strategies and how they guide their clients to make better investment decisions, whether the trend following industry should be concerned about replication strategies and how allocations are funded today. Lastly, we discuss how Aspect Capital uses AI in their work and how systematic trading has changed as a whole with the rise of AI, what Todd is most excited and concerned about in 2024 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:
02:24 - Introduction to Anthony Todd and Aspect Capital
05:43 - A global macro perspective
09:45 - How has the industry evolved?
13:51 - Are investors under-allocated to trend?
17:11 - Trend following - a return enhancer?
20:37 - The correlation between stocks and bonds
25:27 - The path to offering multible strategies
29:47 - Balancing choices and guiding clients and investors
33:26 - Are CTAs threatened by replication strategies?
39:11 - How are allocations funded now?
42:28 - CTAs - competitors or a different allocation?
44:44 - Does capping the beta make sense?
49:21 - Are investors becoming too difficult?
52:49 - Todd's view on the use of artificial intelligence
58:13 - Has trend following changed because of AI?
01:02:53 - Excitement and concerns for 2024
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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