FAQs: Blueprint Chesapeake Multi-Asset Trend ETF
Who is the Primary Portfolio Manager?
Legendary Turtle Trader Jerry Parker is the primary Portfolio Manager for the Blueprint Chesapeake Multi-Asset Trend ETF (TFPN). Jon Robinson is Co-Portfolio Manager and primarily responsible for managing the cash and collateral, which is limited to short-term interest rate instruments.
Who is Blueprint & What is the Firm's Role in TFPN?
The team at the Blueprint family of companies has worked with Parker and his team at Chesapeake Capital Corporation for about 10 years, in various capacities. Like Chesapeake, Blueprint manages a variety of trend-following-based strategies.
As it relates to TFPN, Blueprint manages the cash and collateral of the strategy, as well the marketing and distribution.
What Is The Expected Volatility?
TFPN is unique because it does not target volatility. Instead, it allows winners and outliers to run.
That said, the long-term volatility, as measured by standard deviation, is anticipated to be around 15.
The massive global exposure of TFPN and its ability to trade as many as 500 securities, futures, and forward contracts may help lower volatility without hurting its ability to generate strong risk-adjusted returns.
What is the Difference Between TFPN & Chesapeake’s Other Strategies?
The underlying strategy used by TFPN has been trading since 1994 and is offered by Chesapeake as a private fund and separately managed account.
TFPN dedicates roughly half its risk budget to equities, with the remainder allocated across the currencies, fixed income, and commodities macro asset classes. It has the ability to go long, short, or neutral across as many as 500 securities, futures, and forward contracts.
Why an ETF Vs. a Mutual Fund or Limited Partnership?
There are a few primary reasons for the ETF structure including:
- Easily accessible to most investors due to low minimums and availability on most platforms
- Lower fees than other vehicles, on average
- More favorable tax structure, which is unique for strategies utilizing commodities
- Demand across the retail, advisory, and institutional channels for an ETF
What Does TFPN Stand For?
Simply: Trend Following Plus Nothing.
Human nature seems to distrust simplicity. Trend following’s simplicity often causes asset managers to add something to their decision-making system. They offer trend following plus something. The plus something is usually added with the goal of making the process appear more complex, or to smooth rough edges that may be difficult for human nature to “stomach” during volatile times.
We think that’s unnecessary and potentially detrimental, which is why we’re focused on trend following plus nothing.
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