SI260: The Voldemort of the Asset Management Business ft. Andrew Beer

Sep 9, 2023

Andrew Beer, an expert in asset management and replication strategies, joins the podcast to discuss replication strategies, differentiation among managers, and the growth outlook for the CTA industry. They also touch on the challenges of the Lemming effect, the obsession with multi-strategy hedge funds, and the capacity of the trend following industry.

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Introduction

00:00 • 3min

Return to Normalcy in Correlation and Bond Prices

02:55 • 4min

Performance of Financial Indices and Markets

06:44 • 18min

Trading in Alternative Markets for Alpha

25:04 • 25min

The Importance of a Third Leg in Asset Allocation Models

49:37 • 5min

Maintaining a Long-Term Investment Strategy

54:32 • 2min

The Next Potential Train Wreck in the Hedge Fund Industry

56:56 • 20min

Is the economy actually doing better than we expected? This week we are joined by Andrew Beer, where we discuss the use of replication strategies in the current economic environment and how many markets/factors you should include, how managers can differentiate themselves from each other and the outlook for growth in the CTA industry. We also discuss the challenges of the Lemming effect in investing and today’s obsession with multi-strategy hedge funds, the capacity of the trend following industry and much more.

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Episode TimeStamps:

01:20 - What has happened recently?

05:51 - Industry performance update?

07:13 - Are managed futures funds are right for replication?

13:55 - How did they test it?

17:23 - Are economies becoming less synchronised?

25:02 - How many markets are enough for replication?

29:01 - Why are people going into alternative markets?

32:58 - Have managers become more different or similar?

41:02 - Industry disruptions - how is Andrew different?

47:22 - Why CTA assets will be much higher in 10 years

54:44 - How Andrew resist making changes to his replication strategy

56:54 - Train wreck in hedge fund land

01:04:02 - How do multi-strat funds manage their expenses?

01:08:25 - The challenges of the industry

01:14:21 - Thanks for listening

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