Ep. 3: Charles Faulkner Interview with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
00:00
The Importance of a Good Track Record
I think the natural human reaction is, oh, wow, that track record is one to two percent a month. That's great. A lot of people would see like a long term capital management track record before they blew up. I say there you've either got long-term capital management on your hands or you have Bernie Madoff who constructed, you know, fake constructed one or two percent a week. It gets funnier than that because it's about the time that these guys are on a new high and all the people will pour into the fund at that point which causes reversion to the mean.
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