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Ep. 347: Kathryn Kaminski Interview with Michael Covel on Trend Following Radio

Kathryn Kaminski
Kathryn Kaminski

My guest today is Kathryn Kaminski, the Director of Investment Strategies at Campbell and Co–the famed CTA started by Keith Campbell. Today, Kaminski outlines her new whitepaper, specifically diving into correlation among traders (CTAs).

The topic is Trend Following.

In this episode of Trend Following Radio we discuss:

  • Correlation between fund managers and strategies
  • The media’s misrepresentation of systematic strategies
  • Diversification in the CTA and equity world
  • Why one trend following strategy is similar to just one stock

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Just Starting Out? Read Like Crazy!

Feedback in:

Dear Michael,

My name is Jason and I am an avid listener to your podcast. I have a 13-year-old son who I would love to guide toward having the kind of economic freedom and lifestyle you talk about on your podcast. I am a dentist and am not familiar with what it takes to make it in the world of finance, entrepreneurship, and investing. I would be very interested in what educational goals and life experiences you would encourage a smart, 13-year old young man to go after given your valuable insight having been highly successful yourself and having interviewed many highly successful people. Would you take a certain course of study? Would you start a business or go into a certain profession? Would you work in a corporation to learn the ins and outs of the world of business?

It is a little overwhelming when trying to figure out how to steer a young man, but I guess the bottom line is this: What would you plan to do from 13-21 if you had to do it all over again? Any thoughts you may have would be greatly appreciated. Again, the podcast is awesome and keep up the great work!

Sincerely,
[Name]

I would read like crazy:

That list will keep someone busy for a few years. I would start a business or fund.

Thank you very much for responding to my email. It is a real battle these days to keep kids from being totally absorbed into the world of endless social media distractions on one hand and also being caught up in the political agenda the schools are up to on the other.

That looks like a great reading list and it definitely will keep him busy for a while to come! I also appreciate your advice to start a business or a fund also. Hopefully, those resources and direction will give him a chance to really know what makes this world turn. Again, the podcast is wonderful, and I truly appreciate your email response.

Welcome.


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Ep. 345: Spyros Makridakis Interview with Michael Covel on Trend Following Radio

Spyros Makridakis
Spyros Makridakis

My guest today is Spyros Makridakis, the Rector of the Neapolis University of Pafos NUP and an Emeritus Professor of Decision Sciences at INSEAD as well as the University of Piraeus and one of the world’s leading experts on forecasting, with many journal articles and books on the subject. He is famous as the organizer of the Makridakis Competitions, known in the forecasting literature as the M-Competitions. His calling is to poke holes in the notion that we can forecast with accuracy.

The topic is his paper Why Forecasts Fail. What to Do Instead.

In this episode of Trend Following Radio we discuss:

  • Known knowns, known unknowns, and unknown unknowns
  • The two main types of uncertainty–“subway” and “coconut”
  • Jim Collins, one of the best-selling business book authors of all time, and why it might not have any use to us
  • Medicine and chance
  • The placebo effect
  • Acceptance of an uncertain world
  • The illusion of control

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Ep. 344: Martin Lueck Interview with Michael Covel on Trend Following Radio

Martin Lueck
Martin Lueck

My guest today is Martin Lueck. Lueck holds an M.A. in Physics from Oxford University and currently is the Research Director and President of Aspect Capital. Lueck was originally with Adam, Harding and Lueck Limited (AHL), which he co-founded with Michael Adam and David Harding. At AHL, Martin initially focused on trading system research before taking on responsibility for the further development of the proprietary software language which provided the platform for all of AHL’s product engineering and implementation.

The topic is Trend Following.

In this episode of Trend Following Radio we discuss:

  • Quantitative, systematic styles in action
  • The beginnings of AHL
  • Early coding experiences
  • Early decisions that lead to a completely systematic strategy
  • Diversification
  • What percentage of the educated financial audience grasps the strategies that are used at Aspect
  • Behavioral economics
  • Bringing new potential opportunities into Aspect

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Ep. 342: Victor Ricciardi Interview with Michael Covel on Trend Following Radio

Victor Ricciardi
Victor Ricciardi

My guest today is Victor Ricciardi, an Assistant Professor of Financial Management at Goucher College. Professor Ricciardi is a leading expert on the academic literature and emerging research issues in behavioral finance. He is the editor of several eJournals distributed by the Social Science Research Network (SSRN). Ricciardi is also the co-editor of the book Investor Behavior: The Psychology of Financial Planning and Investing.

The topic is behavioral finance.

In this episode of Trend Following Radio we discuss:

  • Risk perception vs. risk tolerance
  • The affect and the anchoring heuristic
  • Behavioral finance vs. behavioral economics
  • Looking at behavioral finance in the context of specific strategies
  • Behavioral economics in the context of asset bubbles and the popping of asset bubbles
  • Why economic growth does not increase happiness; mindfulness as an assist in the notion of good decision-making; the notion of animal spirits
  • Behavioral school vs. the classical school in academia

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Ep. 341: Michael Dever Interview with Michael Covel on Trend Following Radio

Michael Dever
Michael Dever

My guest today is Michael Dever, an American businessman, futures trader, entrepreneur, and author. Dever is the founder and CEO of Brandywine Asset Management, Inc., an investment management firm founded in 1982.

The topic is Trend Following.

In this episode of Trend Following Radio we discuss:

  • Multiple fundamentally based strategies in a systematic diversified portfolio that trades across more than one hundred global markets; strategy diversification
  • The word “predictable” from Dever’s perspective; lack of correlation to other strategies
  • What Dever means by a “not purely quantitative” strategy
  • How and why this particular suite of strategies came to exist
  • The five strategy types
  • Crisis events and black swans
  • The weakness in the multiple strategy return driver set
  • The importance of speculators
  • The fixation on low volatility strategies
  • True portfolio diversification.

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Ep. 340: Tim Ferriss Interview with Michael Covel on Trend Following Radio

Tim Ferriss
Tim Ferriss

My guest today is Tim Ferriss, an author, blogger and motivational speaker known for his bestselling books The 4-Hour Workweek, The 4-Hour Body and The 4-Hour Chef. Ferriss is otherwise known as the guy who has revolutionized the idea of writing a book; he has engineered the process of a bestseller.

The topic is his TV show The Tim Ferriss Experiment.

In this episode of Trend Following Radio we discuss:

  • Why the wrestler Dan Gable is part of Ferriss’ drive
  • The “grinding” aspect of wrestling, and how that has played into Ferriss’ career
  • The early lessons learned about making a TV show
  • The 80/20 rule
  • Comparisons to the Turtle experiment
  • The idea of getting older, recovery, and athletics

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