A financial media headline with the word “trend” usually jumps off the page at you when you’re an asset manager, like Blueprint Investment Partners, that attempts to generate alpha through trend following. This happened to me earlier this year when I saw this one: “Why trends are so intoxicating for investors – and dangerous.” I clicked faster than Australian breakdancer Raygun can ignite an Olympics debate (and win the meme competition).
I was quickly relieved to learn that this was not a fabricated hit piece on the practice of trend following. Rather, the article by Julie Hyman was designed to highlight the opportunities and challenges that exist when investors attempt to profitably invest in the securities of new products and services taking the mainstream by storm – think Roblox, Beyond Meat, or Airbnb.
Not only was I relieved, but I was also excited for the chance to connect how this endeavor can be aided by a systematic investment process utilizing trend following.
