Top Traders Unplugged

SI247: What is Smart Diversification? ft. Nick Baltas

06.10.2023 - By Niels Kaastrup-LarsenPlay

Download our free app to listen on your phone

Download on the App StoreGet it on Google Play

Today, Nick Baltas return to the show for a look at some recent published research papers by our friends over at Quantica and AQR. Despite our technical difficulties with my audio and notes...we discuss the timing and speed of executing trades and the pros and cons of trend following compared to stocks and bonds, how to achieve the best protection whilst maximizing returns during times of trouble in equities or higher interest rates and why short term strategies does not necessarily give you better protection, nor better returns. We also discuss the similarities and differences between trend following and economic trend and the importance of luck, why you get what you pay for in terms of manager performance and much more. ----- EXCEPTIONAL RESOURCE: Find Out How to Build a Safer & Better Performing Portfolio using this FREE NEW Portfolio Builder Tool -----

Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website. IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here. And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here. Learn more about the Trend Barometer here. Send your questions to [email protected] And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast. Follow Nick on Twitter. Episode TimeStamps: 01:10 - What happened this week? 03:24 - Industry performance update 05:07 - Q1, David: About the speed of execution 10:43 - Q2, Oliver: Trend following vs. stocks and bonds 16:08 - A discussion on smart diversification 22:21 - Shorter term strategies = more protection? 25:22 - The role of lookback 29:07 - Paper on economic trend 36:16 - Trend following vs. economic trend 45:18 - Withstanding the pain of long term trend following 54:16 - Capping equity exposure 56:08 - Is fee reduction alpha? 01:02:01 - Does CTA replication models = single manager risk? 01:04:04 - The problems with...

More episodes from Top Traders Unplugged