Rimrock Associates = No Trend Following

An advertisement forwarded to me today:

Large fund is looking to add systematic traders to their very successful team. Systematic trading strategies in commodity futures (oil, Euroollar, FX, etc), government bond futures. Market neutral style – NOT seeking someone with directional strategies (e.g. trend following).

Trend following? No! We prefer someone who has that special LTCM flair.

Note: Just noticed that my firm is responsible for Wikipedia’s image source for LTCM.

8 thoughts on “Rimrock Associates = No Trend Following

  1. aka, looking for someone who wants to short options vs buying options long… picking up nickels in front of the steamroller.

  2. Ignorant fund managers who believe in outperforming the market with sophisticated trading methods actually still do exist! Oh well.

  3. “If you have that special touch of buying cheap and that inteligent fundamental aproach of knowing where a market is heading, we have a seat for you! Remember a profit is always a profit, dont be greedy!”

    :-))

  4. Sandwah, to further your point, a little story.

    I was on the phone with my compliance guy in the second week of May. Had some chit-chat before getting down to business. He was asking me about markets and the like. I told him that so far we’ve given back a little of the profit we made in April, but that’s part of trading. He asked about the performance MTD, I told him we were down about 6 percent. His response, “that’s nothing! Listen to this”. He had just gotten off the phone with a client of his who thinks they may have to close up shop. The reason? Down 48% in the first half of May. Their trading strategy short volatility on the S&P.

    The pathetic thing is they did this once before, but “assured” clients everything was fixed. Oh, it was fixed alright. Now, their clients (former) are fixed.

    Having a 48% drawdown is not the problem, if you’re a trend follower. But when your strategy is, as you so accurately stated, “picking up nickels in front of steamroller”, you’re toast.

  5. This is what I read from their posting.

    We believe in holy grail predictive ratios and more importantly we believe in our own brilliance in being able to determine which one of these holy grails will work over the next 3 months. If you have studied for several years to earn a PhD and in the process lost your ability to see that our approach is set to blow up soon, put your resume on the pile and we’ll think about letting you interview.

  6. We’re looking for two types of Fund Managers: Those who understand what they do not manage, and those who manage what they do not understand.

  7. Tom, your comments are very narrow and off the mark.

    I am a disciplined Trend Follower, 100% algo, multi-market, long/short,…but there are many who successfully trade other methods including spread, mean-reversion, HFT, using 100% algo also. We should not be so foolish to believe that there is only one way to successfully trade markets.

    Just because they are looking for non-directional traders, does not mean they are looking for discretionary, predictive traders, or holy-grails. Those comments are narrow-minded in this context.

    There are numerous systems traders, not just TF. Many systems traders employ multiple systems to reduce vol. Many Trend Followers execute different TF systems within their overall program, not just one strategy.

    Also, Rimrock appears to be a search firm, not the trading group.

    When you think you know it all, you surely don’t.

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