TTU137: A new approach to Entering Trends ft. David Gorton, CIO at DG Partners

Today, we are joined by David Gorton, CIO at DG Partners, for a conversation on how they use trend following to achieve a multi-billion dollar portfolio. We discuss how to become a better trend follower by understanding the weaknesses of the strategy and their approach to produce positive alpha, the challenge of timing trend following and how they focus on the conceptual trend without giving up the skew and how the "dark" 10-year period has affected their approach to volatility. We also discuss how they manage risk in an uncertain environment and the state of liquidity, whether trend following has a limit in terms of capacity and much more.DG Partners LLP is authorised and regulated by the FCA and only provides services to professional clients as defined under the FCA rules.-----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 Alan on Twitter.Learn more about DG Partners.Episode Timestamps:02:08 - Introduction to DG Partners 03:38 - Their road to trend following 12:13 - The weaknesses of trend following 16:00 - Too concerned about Sharpe? 19:10 - The dual mandate 22:51 - The trend following narrative 27:19 - Capturing the meat of trend following 30:24 - Need for speed? 38:13 - How many markets do they trade? 40:16 - Rethinking volatility? 43:01 - Their execution process 44:00 - Their view on CTA replication 47:39 - Risk