Tag: Trend following

Yes, Behavior Bubbles Do Exist

The other day I was speaking with my brilliant friend Liam about the snap back in the market from the almost historic down move, and he reminded me of the question I asked in a blog last November:  Do Behavior Bubbles Exist?.  I think we have our answer, and in fact, we may have had… Read more »

What The Data Says About Market Crashes

With global equity markets continuing to trade at all-time highs, most astute advisors are seeking downside protection.  The recent bull market in U.S. stocks entered its 10th year and the concern over a large drawdown or even an overnight price shock is also reaching tangible levels.  As systematic managers, we rely on the data to… Read more »

Do Behavior Bubbles Exist?

A few weeks ago, I attended a family office conference on the West Coast that, as in the past, was comprised of a crowd of industry experts (writer excluded of course), including family office advisors, executives, and top minds from all corners of the investment universe.  Being a lifelong member of the East Coast clan,… Read more »

60/40, Landlines, and 8-tracks

The investment industry is facing a “60/40 problem”. Over the past several decades, advisors have leaned on the 60/40 portfolio to deliver a less-volatile, but still relatively reliable return for balanced investors due to their lack of tolerance for the volatility and drawdowns of a pure equity allocation. While the addition of bonds to an… Read more »

Trend Follow Everything: Actively Managed Funds

The Wall Street Journal recently published a profile piece about Will Danoff, the manager of Fidelity’s Contrafund (FCNTX), which got us thinking. As stated in the piece, the $108 billion Contrafund has averaged a 12.7% annual return since Danoff took over the fund in September 1990, outperforming the S&P 500 index by 2.9 percentage points per year…. Read more »

Trend Follow Everything: Bank Woes and Risk Management

As media outlets, governments and markets react to the continuing troubles of Deutsche Bank (NYT, BBC, Bloomberg, Atlantic), our research staff was both eager and curious to examine the potential impact of adding a trend following system to DB’s stock, as well as to those of fellow sector firms Credit Suisse and Citigroup. The recent woes of these… Read more »