Join John Jackson, Global Head of Hedge Fund Research at Mercer, and Alan Dunne in this enlightening episode as they dive into the world of hedge fund selection! Discover how a leading institutional consultant selects hedge funds and builds robust portfolios. John shares his insights on why starting with manager selection is key to the portfolio construction process and how he integrates top-down considerations into the mix. The conversation delves into the roles different strategies play in a portfolio, how return expectations are set, and which strategies might thrive in a high-rate, volatile macro environment. John also takes us through Mercer’s rigorous process for researching and selecting new managers, what they look for in a manager, and potential red flags to watch out for. Plus, he sheds light on the importance of emerging managers, the AUM needed for a successful launch, and why he’s passionate about discovering these managers early on. 

-----

50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE

-----

Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.

IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.

And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.

Learn more about the Trend Barometer here.

Send your questions to info@toptradersunplugged.com

And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.

Follow Alan on Twitter.

Follow John on LinkedIn.

Episode TimeStamps:

02:37 - Introduction to John Jackson

05:40 - A changed environment for hedge funds?

08:42 - Best strategies for a high rates environment

11:50 - Are clients stuck in the past?

13:40 - A framework for building hedge fund allocations

18:13 - More art than science

19:15 - Define your objectives clearly

20:51 - A multi-strat dominance - pros and cons

25:14 - Getting comfort in your hedge fund strategies

28:32 - How to incorporate diversifying strategies in your portfolio

30:48 - How Jackson approaches return expectations

33:13 - Typical number of managers

34:00 - The role of hedge funds

35:44 - Their process of selecting managers

38:56 - What makes an opportunity compelling to them?

43:28 - How they trade in the systematic space

45:10 - Quant managers - are they any different?

47:08 - AI and machine learning in the quant space

49:25 - How important is transparency?

50:54 - Their process of deselecting and changing their manager roster

54:07 - Identifying talents in the manager space

56:18 - How much capital is needed to launch a macro fund?

57:52 - The pros and cons of committees

01:00:21 - Getting through the committee

01:02:12 - Advice for other investors

Copyright © 2024 – CMC AG – All Rights Reserved

----

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

Privacy Policy

Disclaimer