Ep. 639: Martin Bergin and James Dailey Interview with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Importance of Correlation in Trend Following
The total assets in trend following portfolios around the world, it's tiny by comparison to, quote, traditional assets. So we view it as a core holding of any portfolio because not only is it uncorrelated on a general environment on a day-to-day investment, but it also becomes negatively correlated during significant crisis environments. 2008 would be the most recent perfect example where equities are at a bear market and managed futures tend to do well. The other thing that the misnomer is people think they can go into the hedge funds space, long short equities. There's no opportunity for them to really profit from this market.
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