Ep. 68: Mark Shore Interview with Michael Covel on Trend Following Radio

Oct 9, 2012

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My guest today is Mark Shore, a trader and educator whose main area of expertise is managed futures. Shore has an MBA from the University of Chicago, was the former head of risk at Octane Research (over a billion AUM), was the former COO of VK Capital (a subsidiary of Morgan Stanley), and now is an adjunct professor at DePaul University teaching the only accredited course on managed futures in the country.

The topic is his paper Decoding The Myths of Managed Futures.

In this episode of Trend Following Radio we discuss:

Shore's experience in getting the "a-ha" moments out of his students when teaching managed futures, and how he brings his students into the world of managed futures
How and why those working in the CTA/managed futures/trend following space have a firm grasp on risk management that exceeds the understanding of competitors (i.e. mutual funds)
How the term "managed futures" (which refers to the instrument and not the strategy) might be problematic
Skewness
Drawdowns
Why managed futures performance is famous for doing extremely well when chaos unfurls
Why the majority of the mutual fund industry hasn't adopted CTA strategies
The issue of survivorship bias
Why certain people can't wrap their arms around strategies not based on fundamental analysis
The emotional elements of trading
Other experiences while working at VK Capital

Jump in!

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I'm MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I'm proud to have delivered 10+ million podcast listens since 2012. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trend following are all passionately explored and debated on my show.

To start? I'd like to give you a great piece of advice you can use in your life and trading journey… cut your losses! You will find much more about that philosophy here: https://www.trendfollowing.com/trend/

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