Feedback from a manager of a $2B dollar equity portfolio:
“Hi Michael: I love receiving your emails and insightful comments. I manage a $2 billion equity portfolio. One of my primary strategies is trend following. I have been roundly criticized by my fellow portfolio managers and analysts who believe that a DCF (discounted cash flow) model is the answer to successful investing. Sometimes it’s very tough explaining that the reason I own a stock is because it’s going up. That’s too simple for these University of Chicago trained MBAs and CFAs. But some of them are slowly coming around to trend following because they see the results. Over the past 3 years I have outperformed my benchmark by about 800 basis points, while the other portfolio managers are consistently failing to beat their benchmarks. After managing money for over 12 years, I am absolutely convinced that trend following works. I am so glad I found your book. Thank you.”
[Name Withheld], CFA Portfolio Manager
Ohio Teachers Retirement System
Of course, the praise is a nice boost to ego, but to me the great insight from this type of feedback is that it presents a view of trend following from someone you might not first expect it from.