TTU88: The Importance of Explaining the Why ft. Andrew Baxter of Cambridge Capital Management – 2of2
In this episode, we dive into the models and processes that Cambridge Capital and Andrew Baxter use to manage risk, research new ideas, and grow their business. We also talk about the importance for managers to explain why they do what they do, rather than just what they do.
Listen in to learn more about the future of the managed futures industry and how to be successful in it.
-----
50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE
In This Episode, You’ll Learn:
- How his forecast method works
- How he develops his basic models
- How they come up with new ideas for models at Cambridge Capital
- The various short term and long term models that they employ and how they use them
- When they make interventions to the system
- The risk management they use and why they have a risk budget
- Why they are continuously adjusting their risk in the market
- The drawdowns that they expect to see in their program and the ones that they have been through
- Why he thinks CTA firms had significantly higher drawdowns in 2013 then they had ever had before
- How their research cycles work
- How to compare a life track record with a simulation of the current program
- Why we should look at why managers do things more than what they do
- Why raising assets is the biggest challenge his firm faces today
- What it takes to become a great fund manager
- The skill that he would pass onto his children
- The challenges he sees for the CTA space
-----
Resources & Links Mentioned in this Episode:
- Extraordinary Popular Delusions and The Madness of Crowds
- The Winner’s Curse
- books by Reinhold Messner
Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.
IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.
And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.
Learn more about the Trend Barometer here.
Send your questions to info@toptradersunplugged.com
And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.
Follow Andrew Baxter on Linkedin.
Copyright © 2024 – CMC AG – All Rights Reserved
----
PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:
1. eBooks that cover key topics that you need to know about
In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. Click Here
2. Daily Trend Barometer and Market Score
One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! Click Here
3. Other Resources that can help you
And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. Click Here