Ep. 190: Jason Gerlach Interview with Michael Covel on Trend Following Radio

Michael Covel talks with Jason Gerlach, CEO of Sunrise Capital Partners (sunrisecapital.com). Sunrise was originally featured in Covel’s “The Little Book of Trading”. This is conversation is mentality behind the nuts and bolts: systems, trends, models, etc. Covel and Gerlach take a fascinating look at some of the details of systematic trading. Gerlach and Covel discuss why if everything in your portfolio is working at the same time, your portfolio isn’t well-diversified; why the masses think that equities going straight up means “no risk”; thinking about the downside; the importance of “systematic” as an idea and trading strategy and the desire to take out unwanted factors such as panic, fear, and greed from trading; counterarguments to people who call systematic strategies a “black box”; why the news generally ignores systematic trading strategies, and why Nassim Taleb’s “The Black Swan” might be making systematic trend strategies a little “sexier” to mainstream media outlets; the word “asymmetric” and why it’s so important to Sunrise and their Asymmetric US Equities program; US Federal Reserve intervention in markets, and if it’s changed Sunrise’s strategies; why markets are inefficient and exhibit price trends, countered against Eugene Fama’s Nobel Prize-winning theories; and why Sunrise generally doesn’t “add in” fundamentals to the systematic equation.

Sunrise capital team

The Author