Ep. 359: Campbell Harvey Interview with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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How to Avoid Hiring a Skilled Manager
If you believe the actual track record and you actually analyze it in this way of creating alternative histories, then it really helps you avoid the mistake of firing a skilled manager basically because they've had some bad luck. If I see 1% a month every month every year, I'm either thinking it's Bernie Madoff Jr. or another long-term capital management. You can't make money every month. Maybe there's somebody with a high frequency shop that's got some insane advantage that none of us else has - but it just doesn't work that way. It is foolish to think that that is beating the market or alpha or whatever you want to call it. That's called taking risk."
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