Investors Not Interested in Trend Following Commodity Trading Advisors
Article after article have been written regarding the so called “Death of Trend Following” & commodity trading advisors.
There was an article in Reuters which appeared this week.
Investors turn their backs on “robot” hedge funds
The fact of the matter is this is one of the worst periods for CTAs and trend followers for over 35+ years. However one can look at the cup half empty or half full. It might be one of the greatest periods ever to invest in managed futures….or this draw down could continue much further. We are only dealing in uncertainty. The only certainty is there will always be losses…and always long duration’s of draw downs…
However what encourages me personally is the money leaving the space as well as the fact that my mentor traded from 1979 till today. He always stated it was never easy…that is why most people can not trend follow. Add in the fact he compounded his money over the decades to over 8 digits…He always had countless losing trades -which he tried his best to keep small…and he always had long draw downs. This happens to one of the ugliest on both accounts but he is not quitting. Actually chuckling from reading articles like Reuters…
Time will tell…but find it unlikely to write the obituary for trend following.
Past performance is not indicative of future performance