Oct 24, 2014
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.