Top Traders Unplugged
SI272: Disrupting the Asset Management Industry ft. Andrew Beer
Dec 2, 2023
Andrew Beer, expert in asset management and replication strategies, discusses the struggles of managed futures in 2023 and the changing landscape of the asset management industry. Topics include the history of replication strategies, disruptions in the industry, the comeback of the 60/40 portfolio, and challenges faced by trend following strategies.
01:14:43
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Quick takeaways
- The struggle of managed futures in 2023 is attributed to market reversals and mixed performance in commodities, causing negative correlation to equities.
- Replicators offer synthetic, diversified exposure to managed futures, mitigating the risks associated with relying on a single manager.
Deep dives
Performance Challenges in Trend Following
In November, trend following strategies faced a tough challenge due to market reversals in bonds and currencies, initiated by a CPI number and Federal Reserve comments. There were few individual commodities with good trends, and the overall commodity complex was mixed. In contrast, equities and bonds experienced a strong rally. This led to a negative performance for trend following strategies in November. Notably, CTAs and trend followers showed a negative correlation to equities, which further impacted their performance.
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