SI122: Quant vs Discretionary Investing ft. Robert Carver

We’re joined today by Rob Carver to discuss how quant managers compared to discretionary managers in 2020, Winton Capital’s underperformance and resulting loss of AUM, the pressure for successful Trend Following firms to expand into different investment styles, why March & December 2020 were generally the best for Trend Followers despite being so different, how a portfolio combining a few historically successful Trend Following firms has proven to be a very potent investment strategy, navigating negative interest rate environments, how to look at Sharpe Ratios effectively, and how to calculate the ‘Serenity Ratio’ of various strategies.-----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 “The Many Flavors of Trend Following” here.Learn more about the Trend Barometer here.Send your questions to [email protected] 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 Rob on Twitter.Episode TimeStamps: 00:00 – Intro03:07 – Macro recap from Niels03:59 – Weekly review of performance47:20 – Q1; Michael: How many truly diversifying instruments are there, globally?54:42 – Q2; Bruno: As a futures trader, how do you recommend I manage the cash part of my portfolio?01:02:30 – Q3; Kyle: What are your thoughts on scaling in and out of positions?01:08:46 – Q4; Craig: How can Trend Following take advantage of a ‘risk aversion’ environment?01:14:37 – Benchmark performance update01:08:45 – Recommended listening or reading this week: Matt Levine’s articles Bloomberg,