Top Traders Unplugged
SI288: Why Investors are Under-Allocating to Trend Following? ft. Alan Dunne
Mar 23, 2024
Explore the potential market bubbles and economic trends, considering historical cycles and market highs. Analyze the positive trend following performance in various markets. Delve into the UBS Investment Returns Yearbook and discuss institutional under-allocation to trend-following strategies. Dive into portfolio diversification, risk management, and leveraging in investing for optimal returns.
59:55
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Quick takeaways
- Investors may be missing out on diversification by under-allocating to trend following.
- Portfolio construction should consider diverse strategies for optimal returns and leverage usage.
Deep dives
Diversifying strategies based on portfolio needs
When constructing a portfolio, it's crucial to consider various strategies like equity long short, event-driven, macro, and relative value based on their specific roles - return consistency, return enhancement, diversification, or downside protection. The equity portfolio is for growth, while the bonds offer diversification and protection. Macro strategies could serve as return generators, especially in trend following. Multi-strategy funds, though popular, may lack clear allocation focus within these categories.
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