Michael Covel speaks with Mark Manson on today’s podcast. Manson is an author and personal development consultant. Manson has worked with thousands of people from over 20 countries and his writing offers a different take on the self-help genre. Manson calls it “self help from a first person perspective”. He has sold over 15,000 copies of his book “Models: Attract Women Through Honesty” and almost 400,000 people read his site each month. He’s been published and quoted on CNN, Huffington Post, Business Insider, Yahoo! News, The Sydney Morning Herald and a variety of other publications. He is also the CEO and Founder of Infinity Squared Media LLC. Covel and Manson discuss why people are such ass----- on the internet; internet communication vs. real world communication; becoming desensitized to the internet; how Manson came to his entrepreneurial path and how he was inspired by “The 4-Hour Workweek”; location independence and how travel has changed Manson; consumerism in America; having an excess of choice in your life; the type of business Manson has developed and why it’s been successful; why certain approaches to dating aren't emotionally healthy; our bias against performers; and why Manson refers to himself as “self-help for people who don’t like self-help”. For more information on Mark Manson, visit markmanson.net. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel digs into the epic 2014 crude oil plunge and the profits that have followed (from the drop!). In breaking apart the issue Covel quotes Byron Wien, the Vice Chairman of Blackstone, on his oil predictions. What good is a prediction if it’s not even close to reality? If Wien can’t predict the price of oil how can the average investor? It’s that simple. Covel adds into the discussion the importance of cutting your losses, and why all successful traders do so. Building on taking a loss, Covel opens up catastrophic loss "imagination". Can you imagine a 75% drop in the stock market? Don’t be caught like the fundamental guys with no plan. Prepare for it. Covel also discusses why having a system means not having to be "definite"; having an approach based on the fact that you don’t know what is going to happen next; and why trend following has been buried in the mainstream media. The oil plunge in 2014 has been historic and offers a great example of trend following success in action. Would you like a free trend following DVD? Go to www.trendfollowing.com/win.
Michael Covel speaks with Charles Faulkner today on the podcast. Faulkner is an author, trader, and an expert on modeling the knowledge and performance of exceptional individuals. He was originally featured in "The New Market Wizards" by Jack Schwager. Covel and Faulkner discuss the notion of fictional people and why famous figures in finance are “fictional”; the importance of narratives, stories, and metaphors; the halo effect and deluding ourselves; the difference between a story and a strategy; the nature of independent thinking; herd behavior; ego, ignorance, and authority; the five different types of minds: the experiencing mind, the imaginative mind, the reasoning mind, the reflective mind, and the generative mind; system one and system two; why words don’t change people but experience does; experience base and the difference between amateur and professional traders; the two kinds of market wizards; language in the context of the five different types of minds; the importance of asking “how” does the market work over “why”; the importance of luck and time in the case of Warren Buffett; why you shouldn’t get your excitement from trading. For more information on Charles Faulkner, visit charlesfaulkner.com. Want a free trend following DVD? Go to trendfollowing.com/win.
Today on the podcast, Michael Covel speaks with Zbigniew Hermaszewski & Natasha Reeve-Gray, two of the four founding partners of Altis Partners--a very successful systematic and primarily trend following money management firm. Covel, Hermaszewski, and Reeve-Gray discuss Covel’s recent experiences traveling in Asia; the advantages of location independence; early triggers that led Hermaszewski and Reeve-Gray into the systematic trading world and away from the efficient market hypothesis; why Hermaszewskii was motivated to go down the particular path he went down; the advantages of a physics background when applied to trading; looking for predicability in the markets; how Altis uses predictability in the context of their world; the four broad types of market behavior in Altis’ program; trend following and persistence; inter-market relationships; why there are no “manual” inputs in Altis’ systematic program; portfolio construction and why Altis is different from its peers; applying the same models to all markets; and the collegial atmosphere amongst London CTAs. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel speaks with Jim Rogers on today’s podcast. Rogers is an American businessman, investor and author currently based in Singapore. He is the Chairman of Rogers Holdings and Beeland Interests, Inc. He was the co-founder of the Quantum Fund and creator of the Rogers International Commodities Index (RICI). Rogers does not consider himself a member of any school of economic thought, but has acknowledged that his views best fit the label of Austrian School of economics. Covel gives some of his personal history with Rogers, noting that he also first read about him in the Market Wizards book. Covel also notes that Rogers’ Investment Biker book inspired him to travel. Covel joins Rogers for an in-person conversation from Singapore. They discuss why it shows that the kind of people that travel are the kind of people you want in your country; infrastructure in China; stereotypes of various countries in Asia; China’s military; current Fed policy in America; what “can-do” spirit can do in a state of decline; why the next crisis might be worse than the last; the importance of language skills; participating in big long-term bets with regard to countries; and why, if he could, Rogers would put all of his money into North Korea. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel presents a monologue and interviews Travis Jamison on today’s podcast. To start Covel reflects on the first 300 episodes of his podcast. He talks the start of the podcast, key guests and the overall uniqueness of the show. Covel also discusses massive September 2014 trend following performance, whether you can time the top, survivorship bias and the trend following is dead crowd. Next Covel talks with Travis Jamison. Jamison is the founder of Supremacy SEO. He’s a passionate entrepreneur, and a man known for high-level search engine optimization (SEO) chops. Covel and Jamison discuss search in general and search engine optimization; how the fascination with search triggered with Jamison; the idea of manipulation; Google and a monopoly, and some of the competition; Google’s dominance; Google’s definition of “quality”; the EPIC browser; the mindset of being honest on the internet; black hat and grey hat; Google’s penalties, and what can happen when you go too far; if there’s any recovery after being penalized by Google; competitors affecting SEO; Panda, Penguin, and Hummingbird: some of the Google updates; what the future might hold for search. For more information on Travis Jamison, visit supremacyseo.com. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel speaks with Scot Billington and Jon Boorman on today’s podcast. Scot Billington is one of the managers of Covenant Capital along with Brince Wilford. Billington is the Chief Manager, Head Trader, and is responsible for all system development at Covenant. Covel and Billington discuss his firm’s exceptional performance in September of 2014; why low volume and low volatility tend to be accompanied by low returns; whether all of Billington’s trend following trading is predicated on a weekly system; Billington’s background and what got him into the systematic trend following space; why simplicity is the ultimate sophistication; marketing vs. trading reality; why certain investors try and disguise their trend following strategies as something else; why trend following is one of the most repeatable, teachable strateges; why the world still believes in the efficient market hypothesis; why trends continue to emerge as a function of the marketplace; the idea of a barbell strategy; and why upside volatility is not such a bad thing. Next, Covel talks with Jon Boorman in his second visit to the podcast. Boorman is the President and CEO of Broadsword Capital, LLC, a Registered Investment Adviser in Charlotte, NC. Boorman has spent over two decades in global markets, witnessing first-hand some of the most tumultuous periods in financial history. Boorman started the Alpha Capture blog in January 2013 to keep a record of trading signals and market commentary, and demonstrate to a wider audience what could be achieved through trend following. The primary aim has always been to inform and educate. Covel and Boorman discuss the fear of public speaking; the idea of ego in the context of both trend following and buy & hold systems; why you’d seek to minimize rather than eliminate both ego and emotion in the context of trading; how Boorman and Jerry Parker connected and Parker’s early influence on Boorman; both Parker and Boorman’s views on exit strategies; how Twitter changes the level of access we have to each other; whether Boorman’s RIA might move into a fund structure; and process vs. outcome. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel speaks with Emanuel Derman on today’s podcast. Derman is a South African-born businessman and writer, best known as a quantitative analyst. His books include My Life As A Quant: Reflections on Physics and Finance as well as Models Behaving Badly. Derman is a Columbia University professor and formerly at Goldman Sachs. Covel and Derman discuss why economics can be an 'incestuous' field; economics as a moral science; why all four of the US investment banks were not allowed to go by the wayside; Derman’s background and his PhD in theoretical physics; Derman’s early eye-opening experiences at Goldman Sachs; model building, and how Derman was indoctrinated into the world of model building; the financial model and science and the physics model and science; short volatility models vs. long volatility models; how one estimates risk; models vs. theories; whether Derman finds a certain amount of pushback from others in the academic community. For more information on Emanuel Derman, visit emanuelderman.com. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel speaks with Gabriel Oettingen on today’s podcast. Gabriele Oettingen is a Professor of Psychology at New York University and the University of Hamburg. Her research focuses on how we think about the future, and how this impacts cognition, emotion, and behavior. Her first book is called Rethinking Positive Thinking. This is an interesting conversation for Covel--Oettingen is looking at data, just like traders would, but she is looking at data on motivation and positive thinking. Is too much positive thinking a problem? It can be. Is there a way to go about thinking about the future, and thinking positively? Oettingen has a framework and structure that can help us all. Covel and Oettingen discuss positive thinking, optimism and over-confidence; how positive thinking can reign in your sense of urgency; the effect of positive thinking on us from a scientific viewpoint; whether Oettingen views her work as an attack on the self-help industry; Oettingen’s process and how she views data; the WOOP (Wish, Outcome, Obstacle, Plan) process; understanding each component part of WOOP; “ah-ha” moments in Oettingen’s early development; the idea of WOOP as mental contrasting; non-conscious processes. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel interviews Ewan Kirk on today’s podcast. Kirk is the head of Cantab Capital and has brought his firm from $30M AUM in 2006 to over $5B today. Kirk employs several strategies but clearly uses a trend following foundation. Covel and Kirk discuss how consistent and predictable profits are the Holy Grail--you’re never going to get there. Covel and Kirk also explore Kirk’s background, and how someone with a PhD in mathematical physics ends up going to work for Goldman Sachs; why computer programming is “today’s literacy”; standing out from the crowd; trend following in the European scene vs. America; weighting positions based on risk; talking to clients and explaining that losses are statistically inevitable; whether the demand for discretionary traders is waning; how discretionary traders look at a trader like Kirk who is 100% systematic; why discretionary intervention in a systematic trading strategy disqualifies it from being truly systematic; proving a strategy as broken rather than proving that it’s right; why randomness is everything; uncertainty and convictions about technique; capturing the realism of the world in your trading strategy; what actually benefits the economy, society, and the world; seeking client feedback and understanding a client’s drivers; and the importance of consistent marginal improvements. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel interviews both Gerd Gigerenzer and Brian Wansink on today’s podcast. Gigerenzer joins Covel for his second appearance on the podcast. He is currently director of the Center for Adaptive Behavior and Cognition (ABC) at the Max Planck Institute for Human Development and director of the Harding Center for Risk Literacy. Gigerenzer’s new book is Risk Savvy: How to Make Good Decisions. Covel and Gigerenzer discuss the differences between Daniel Kahneman and Gigerenzer’s views; heuristics vs. statistics; the notion of medical check-ups, prostate cancer, and the PSA test; taking risks, and instincts vs. expert advice; relative vs. absolute risk; Benjamin Franklin’s ledger, heuristics, and romance; intuition, facts, unconscious intelligence, and gut decisions; being risk savvy and ordering in upscale restaurants, why Risk Savvy is an alternative to many other outlooks; the two tools to being risk savvy; the gaze heuristic and athletics; complex problems and simple heuristics. Next, Covel speaks with Brian Wansink. Wansink is the John Dyson Professor of Marketing and the Director of the Cornell Food and Brand Lab in the Department of Applied Economics and Management at Cornell University. His newest book is Slim By Design. Covel and Wansink discuss weight and obesity; our genes and environment as an effect on our health; “doing what skinny people do” and studying buffets; modeling the behavior of slim people; the advantages of chopsticks; the power of the grocery shopper of the household; triggers and tips to avoid unhealthy behavior that happens in restaurants; correlations between where you sit in a restaurant and eating choices; the three types of people in the context of nutrition; the influence of the environment on our eating habits; being slim by design vs. being slim by willpower; pursuing happiness vs. pursuing a purpose. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel speaks with Nigol Koulajian and Donald Wieczorek on today’s podcast--two separate interviews back to back. Nigol Koulajian's firm is Quest Partners, LLC and is approaching one billion AUM. Koulajian has a very interesting take on trend following--specifically his take on replicating famous trend following strategies. Koulajian and Covel discuss Koulajian’s background and entrepreneurism within Lebanese culture; how Koulajian got his start, and how he found his way into the systematic strategies he employs today; the influence of Van Tharp; the importance of practices like transcendental meditation and yoga on the mental side of trading and in the context of Koulajian’s work today as a fund manager. the S&P 500 as a trading system; crowd psychology; replication strategies; price action as a trigger for different strategies; volatility, volatility compression, and why volatility is not the way to measure risk in the markets anymore; the Flash Crash; and trend following as a hedge to equity risk. Next, Michael Covel speaks with Donald Wieczorek. Wieczorek’s firm is Purple Valley Capital. Covel and Wieczorek discuss Wieczorek’s early track record; Salem Abraham; drawdowns; Wieczorek’s first exposure to trend following; why losing early in your trading career can be a good thing; why you don’t need to predict market movement to make money; Jack Schwager and the Market Wizards series; and why systematic trading is more than just the technical system. Next, Covel and Wieczorek break apart some of Wieczorek’s monthly performance windows (trendfollowing.com/don.pdf), picking apart the psychology and context of certain months in Wieczorek’s career. Covel and Wieczorek continue on to talk about correlation between famous trend following traders; volatility and risk; and the value of crisis alpha. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel presents “The State Episode” featuring interviews with Doug Casey and Charles Hugh Smith. State power and central planning are two of the topics on today’s show, and both guests love taking a stab at the state. First, Michael Covel speaks with Doug Casey. Casey is the founder and chairman of Casey Research, a provider of paid subscription newsletter services espousing libertarian viewpoints as the justification for the purchase of highly speculative microcap stocks, precious metals, and other investments. Casey and Covel discuss what it’s like having traveled to over 175 countries and where one can find social and economic liberty today in this world; the advantages of being a perpetual tourist; why Casey describes himself as an anarchist; if whether there is a purpose anymore to voting in the United States of America; loyalty to the country where you were born; those who rule out the possibility of a financial panic in the future; quantitative easing and currency debasement; and what was the trigger for Casey’s turn at life as a global traveler. Next, Michael Covel speaks with Charles Hugh Smith. Smith is an American writer and blogger. He is the chief writer for the site "Of Two Minds". Started in 2005, this site has been listed No. 7 in CNBC's top alternative financial sites. Smith's economic works stress the value and efficacy of decentralizing power and wealth, the individual's power of self-determination and the value of community, which in his view has been diminished by the state. Smith and Covel discuss how winners and are being selected by the state as exemplified by the 2008 financial crisis; alliances between corporations and the state; why there might be an uproar if equity markets were not at all-time highs; what happens when the typical wage earner can no longer substitute debt for earned income; stagnant wages and tradable labor; building your life around non state controlled opportunities; the decentralization of power and wealth; and the reliance on secrecy in politics to avoid accountability. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel speaks with Christopher Cruden on today’s podcast. Cruden has been in the trend following space for over 25 years. In 1988 he became a Director of Adam, Harding and Lueck Asset Management Ltd (AHL) in London, a famed trend following shop. He is currently the head of Insch Capital Management. Covel and Cruden discuss why price is an unimpeachable fact; early “lightbulb” moments that brought Cruden to the style of trading he practices today; the notion of going currency only; why Cruden’s program is akin to a raincoat in bad weather; riding increased volatility and increased directional trending; getting clients to understand that you cannot force a system to make money; benchmark selection and time period selection; why the S&P 500 is a trading system; performance drivers; the duration of trades; why if you can’t measure it, you can’t manage it; how Cruden’s strategy would change if Europe reverted back to before the introduction of the Euro; how markets teach humility; why Cruden only trades once a day. For more information on Christopher Cruden, go to inschinvest.com. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel speaks with Steven Kotler. Kotler is an American bestselling author, journalist, and entrepreneur. His articles have appeared in over 70 publications, including The New York Times Magazine, LA Times, Wired, GQ, Discover, Popular Science, Outside, Men’s Journal, Details and National Geographic Adventure. He is best known for his non-fiction books, including the New York Times bestseller Abundance, A Small Furry Prayer, and West of Jesus. His new book is The Rise of Superman. Covel starts off with a personal anecdote about his experiences with 'flow', and Kotler goes onto explain the topic based on Covel’s experiences. Covel and Kotler also discuss synonyms for flow; flow in basketball and other sports; group flow; pattern recognition; the neurological explanation for flow; the four stages of flow; why flow is not just a binary state; spiritual experiences compared to flow states; brain activity during flow states; the “deep now”; getting to the flow state with drugs; the flow state and the act of being on stage; why you need to take risks to get into flow; social fear, risk, and pain vs. physical fear, risk, and pain; method acting, screen presence, and flow; the military and flow research; risk and comfort; the balance between challenges and skills; getting comfortable with being uncomfortable; the fight or flight mindset; and future research into flow. For more information on Steven Kotler, visit flowgenomeproject.co. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel speaks with Mark Rzepczynski. Rzepczynski is a Founder and Chief Investment Officer at AMPHI Capital Management. Prior to co-founding AMPHI Capital Management, he was the CEO of the Fund Group at FourWinds Capital Management, where he oversaw alternative investments. Rzepczynski was also President and Chief Investment Officer at John W. Henry & Co., an iconic Commodity Trading Advisor. He is on the Advisory Board of the Chartered Alternative Investment Analyst Association (CAIA), the Associate Editor of the Journal of Alternative Investments, and a former board member of the FIA Futures Industry Association. Covel and Rzepczynski discuss the advantages of podcasting as a format over traditional media outlets; why prices are “primal”; prices as a heuristic; Rzepczynski’s ah-ha moment that brought him to the heuristic of price; why a complex education doesn’t necessarily mean you should use a complex system; why knowing the reasoning behind price movement is unnecessary; VUCA: volatile, uncertain, complex, and ambiguous; VUCA in the context of portfolio management; the zen of trading and portfolio management; the importance of passion in investing; the notion of over-diversification; dynamic allocation; convergent vs. divergent; the improbability principle; tail events and preparing for the unexpected; the notion of systematic vs. discretionary; how trend following is represented in the mainstream media; complexity; risk and return; volatility and complacency. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel speaks with Alex Tabarrok and David Nott on today’s two-part podcast, which Covel affectionately calls “The Libertarian Episode”. First, Covel speaks with Alex Tabarrok, co-author of the Marginal Revolution website. He’s an economist at Covel’s alma mater, George Mason University. Covel and Tabarrok discuss China and the importance of teaching Chinese to American children; the greatest anti-poverty program in the world; the difficulty of improving the infrastructure of the United States; regulation and innovation; interest groups; benevolent dictators; the need for a democracy in an information age; innovation in the current American education system; why the American education system is focused on getting you to work for the man; women in the American education system; innovation, intellectual property and patents; the cumulative properties of innovation; grounds for optimism in the United States when it comes to innovation; how George Mason University became a libertarian economist hotspot; if Europe is following the path of Japan; why the European monetary union was a mistake; and why travel can create optimism. Next, Covel speaks with David Nott, president of The Reason Foundation--an organization that is all about free minds and free markets. Covel and Nott discuss The Reason Foundation and what it means to be a libertarian today; how Nott explains being a libertarian to people; how the actor and comedian Drew Carey came to be involved with The Reason Foundation; finding the optimism to stay focused on swaying people to the founding principles of our country; politics in China; the 2008 financial crisis, state control, and Reason’s response to the bailouts; common sense notions; pension reform; drug policy reform; the cultural policies surrounding prohibition; expanding the idea of liberty to younger people; Vernon Smith and Walter Williams. For more information on The Reason Foundation visit reason.com. Want a free trend following DVD? Go to trendfollowing.com/win.
Today on the podcast, Michael Covel interviews Frank Curzio and Robin Griffiths. First, Covel speaks with Frank Curzio of Stansberry & Associates. Covel and Curzio discuss how the fundamental guys justify all time highs in the equity market; the Shiller PE ratio; the importance of analyzing interest rates; Warren Buffett recent investments; what the Fed would do if we went down 30% today; why having a low interest rate environment creates a good situation for stocks; being prepared from a risk management perspective; Zero Interest Rate Policy, its effect on equities and bonds, and tail risk; comparing the environment today to the 1987 crash; hypothetical situations surrounding the S&P 500; exit strategies; and the 24-hour news cycle. Next, Covel interviews Robin Griffiths, Chief Technical Strategist at ECU and formerly at HSBC. Griffiths comes at it from a technical perspective. Covel and Griffiths discuss how to use fundamentals in an age when interest rates are artificially controlled; Griffiths’ history as a mechanical engineer and how he found his way into trading and technical analysis; regression analysis; Elliott Wave and cycles; the idea of whipsaws; geopolitical risks; China, India, and the rise of Asia; not trading off of geopolitical fundamental information; how Griffiths came to the conclusion that the efficient market hypothesis and much of what the mutual fund industry depends on doesn’t hold water; spikes and why people in 2014 think that all spikes are gone; Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay and the cyclical nature of booms and busts; and virtual currencies. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel speaks with Toby Crabel of Crabel Capital Management. Covel first reached out to Crabel, who is a short term systematic trader, in 2005. Crabel’s approach is very different from Covel’s, but there are some commonalities: price action driven, systems, models, risk management. But Crabel is working on a whole different time frame, turning his portfolio over typically in less than a day. Crabel, a former pro tennis player, has a philosophical nature and discusses how he executes these philosophies in the trading world. Crabel and Covel discuss Crabel’s history as a pro tennis player and the connection between tennis and the drive he has in the asset management field today; longevity and consistency in tennis and trading; where Crabel stands with the total number of systems he employs; the source of Crabel’s profits and the philosophy behind it; price action; winning and losing volatility; why Crabel needs price movement and volume; the idea of price shocks and the importance of being aware of them; the process of moving from high drawdowns to a much lower drawdown; the importance of diversity; early lightbulb moments that informed Crabel’s trading style; Crabel’s experience with Victor Niederhoffer; how the philosophy of Objectivism has informed Crabel’s life; the liquidity of futures markets; and the importance of persistence. For more information on Toby Crabel, visit crabel.com. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel speaks with Alex Greyserman. Greyserman is Chief Scientist at managed futures firm ISAM. He is also a professor at Columbia University. Greyserman’s new book with previous podcast guest Kathryn Kaminski is titled Trend Following With Managed Futures. Covel and Greyserman discuss the idea of young college graduates writing articles about the death of trend following while firms like Greyserman’s continue to have tremendous success; alternatives to thinking only 'long stocks'; Greyserman’s first meeting with Larry Hite and how they have come to have such a career together; why trend following is about more than getting on the right side of the S&P trade; the difference between cross-sectional momentum and time series momentum; the phrase “crisis alpha” and why trend following does well in times of crisis; the cost of not having trend following in your portfolio; benchmarking and diversification; why the worst thing you can do is “trend follow a trend follower”; the science of trend following; speculation; trend following your life--not just the markets; dispersion among trend following traders; and the effect of a higher rate environment. For more information on Alex Greyserman, go to isam.com or visit Amazon to find his book with Kathryn Kaminski, Trend Following with Managed Futures. Want a free trend following DVD? Go to trendfollowing.com/win.
Today on the podcast, Michael Covel speaks with Anthony Todd. Todd is the CEO of Aspect Capital, one of the most successful managed futures trend following firms. Todd co-founded Aspect in September 1997. Before that, he was with AHL. Covel and Todd discuss why prices aren’t random; finding an inefficiency that the academic financial community refuses to acknowledge; the idea of “predictable” patterns in the market; the desire to know static positions; how crowd behavior drives trends; addressing misconceptions; using fundamentals in a systematic way; defining Todd’s medium-term style of trend following; why “it’s less about the genius of the trade and more about the repeatability of the approach”; how long you can be in a particular market before you give up on it; client understanding of trend following drawdowns; the phraseology of “crisis alpha”; the culture that Todd has built at Aspect; and Todd’s advice to young entrepreneurs. For more information on Anthony Todd, visit aspectcapital.com. Receive complimentary trend following DVD: trendfollowing.com/win.
Today on the podcast, Michael Covel speaks with Jason Fried. Fried is the founder and CEO of Basecamp (formerly 37Signals). Fried is also the co-author of the book Rework, which is about new ways to conceptualize working and creating. Fried and Covel discuss the first dollar Fried made online and other formative experiences; keeping business simple; making something more valuable than the dollars people give you; the intimacy of exchanging money; the idea of doing less than your competitors to beat them; building an audience; the “real world”; why an MBA program might not teach you much about entrepreneurism; corporate structure; focusing on what will not change; zen and the moment of right now; not focusing too far into the future; Fried’s experience with Jeff Bezos; and the idea of improvisation or “winging it” in business. For more information on Jason Fried, visit basecamp.com or follow him on Twitter at @jasonfried. Want a free trend following DVD? Go to trendfollowing.com/win.
Today on the podcast, Michael Covel interviews Roland Austrup. Austrup is Chief Executive Officer and Chief Investment Officer at Integrated managed Futures, part of the IAM group out of Canada. Austrup’s firm comes at trading from a slightly different perspective: very systematic, but also using fundamentals systematically. Austrup and Covel discuss how Austrup got started in the industry, and whether he was always a “quant” thinker; early experiences with Ed Seykota; whether Austrup uses a systematic use of fundamentals or a discretionary use of fundamentals; why systematic can be frightening to certain people; managing risk and the return to risk profile; why Austrup targets a downside volatility of 13%; why “the returns will take care of themselves” if you manage risk correctly; trading trends and not market noise; being on the right side of a trend; the phrase “equity-like returns”; reviewing trend following performance in recent years; why Austrup’s strategy is not based on prediction; the importance of a broadly diversified portfolio; lack of correlation to traditional long-only equities strategies; and the current low rate environment. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel speaks with Kathryn Kaminski on today’s podcast. Kaminski is deputy managing director the institute for financial research (SIFR) Stockholm Sweden. She’s also a contributor to CME Group. She earned her PhD at the MIT Sloan School of Management. At the MIT Laboratory for Financial Engineering, she conducted research on financial heuristics in collaboration with Professor Andrew W. Lo. Her new book, with Alex Greyserman, is "Trend Following with Managed Futures: The Search for Crisis Alpha.". Covel and Kaminski discuss survivorship bias; Kaminski’s background and upbringing; convergent risk-taking strategies and divergent risk-taking strategies; social networking as an example of risk; Apple as an example of convergent/divergent; the importance of failure; the efficient market hypothesis, the idea that trend following is “voodoo”, and the lack of transparency in trend following; critics of trend following; Kaminski’s “ah-ha” moment with trend following; why trend following works in times of crisis; the adaptive markets hypothesis; looking at markets like ecologies; divergence and “punctured equilibrium”; the process of going back 800 years analyzing trend following; the idea of black boxes; and the acceptance of trend following. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel speaks with Vineer Bhansali on today’s podcast. Bhansali is a managing director and portfolio manager at PIMCO. His most recent book is "Tail Risk Hedging". He has 24 years of investment experience and holds a Ph.D. in theoretical particle physics from Harvard University. His new white paper is out titled “Trend Following Through The Rates Cycle”. Covel and Bhansali discuss “Trend Following Through The Rates Cycle”; trend following in the classical sense; how trend following started to become part of the discussion at PIMCO; introducing new ideas to PIMCO, corporate culture, and to clients; the three hypotheses tested in “Trend Following Through The Rates Cycle”; currency trading and trend following returns; why larger trend following shops may have trouble getting into smaller markets; trend following across a diversified portfolio and classical trend following approaches; connecting Bhansali’s hobbies to the quantitative world; structure and thinking in terms of code; imagining and building simulations; being distribution aware; and why being at all-time highs is not the time to feel satisfied. To read “Trend Following Through The Rates Cycle”, visit PIMCO. Want a free trend following DVD? Go to trendfollowing.com/win.