Category: Interviews

Paris Panel on April 24

April 23, 2008

I am moderating a panel on Thursday in Paris at TradeTech. The panel includes Salem Abraham and Peter Borish.

MFA's Network 2008 Panel

December 31, 2007

I am moderating a Managed Funds Association panel at The Ritz-Carlton, Key Biscayne, FL (February 11-13, 2008). This is for the MFA's Network 2008.

Harry Markowitz Interview

November 20, 2007

I interviewed Dr. Harry Markowitz at his San Diego area office yesterday. In Las Vegas now to talk with pro poker players.

David Harding Interview Today in London

November 01, 2007

I interviewed David Harding of Winton Capital for my upcoming film documentary today. Harding runs the firm Winton Capital. His firm started 10 years ago with 10 million under management. Today his firm manages over 10 billion. Before Winton Capital Harding helped start AHL (now Man).

London Interview

October 31, 2007

I am in London for a film interview, so my posting has been spotty!

David Kass of the CFTC

September 26, 2007

I spoke with David Kass of the CFTC yesterday in Dallas. David is the Senior Economist in the Division of Market Oversight. I wanted to know if/when we would see the minimums come down so the average guy could participate in hedge funds and commodity trading advisers. His answer somewhat surprised me. While he was not offering too much, he did note that the minimums have come down dramatically in the last few years. It was refreshing to hear him say that. Everyone should have the ability to participate in hedge funds just like they can in mutual funds. There is no truly legitimate reason to keep people out.

A Simple Chart

August 28, 2007

I was on the road today interviewing a very successful trend trader. While today was clearly "volatile", he could have cared less what was going on during market hours. Why? He doesn't make his trading decisions during market hours. He is all about having the flight plan set before the market opens. All if/then contingency decisions are made in advance. The rules rule.

Taking that story into account take a look at a simple little chart. We all know there has been some serious volatility during that stretch. Now think about each day during that three month window. Almost every day was filled with "news". Almost every day had talking heads on TV giving a forecast or prediction.

See where I am going? Doesn't the existence of a trend trader with a thirty year track record conflict with a talking head forecaster convinced his or her "words" matter?

Wallstrip Chat: Michael Covel & Lindsay Campbell

March 30, 2007

VIDEO: Wallstrip Chat with Michael Covel.

Check out the interview above. As a side note, while I may not act daily as a full-time trader for clients, I am a full-time entrepreneur who takes on healthy risks continually. My career earnings have come from business ventures, real estate, investing with traders and trading. However, at this stage of my life I have no desire to go the direction of managing money for clients (and all the associated red tape). Stay tuned for another interesting development!

Interview?

March 25, 2007

If you live in the Washington, DC Metro area and would like to be interviewed (on film) about the subjects I write about, drop me a line. I have found that question and answer formats work much better than standing in front of the camera preaching, hence my desire to get others involved.

Texas Trader

October 02, 2006

I am in Dallas to conduct an interview with a very good trader. More to follow.

Mike Norman Radio Show

June 21, 2006

I did Mike Norman's radio show today on the BizRadio Network. Mike is also a regular pundit for Fox News.

Superfund Presentation at Fifth Avenue Office

June 13, 2006

Last night I gave a presentation to a lively group at Superfund's Fifth Avenue office. Aaron Smith of Superfund had invited me up to speak a few months back. True to his word he provided forum space and let me cover whatever trend following topics I saw fit. I give Aaron (and ultimately Superfund's CEO Christian Baha) credit as I brought up the full range of topics including positive stories about some of their competitors. Why do they allow this? In my opinion they are actively working at the big picture of providing education along with their hedge fund business model. Outside speakers like myself don't like to be constrained and they accept that. It is refreshing.

After the presentation I spoke with a writer from Reuters who covers the hedge fund space (he had read 1/2 of my book so far). He was probing more as he was not really 'getting' trend following. I put a quick chart on the white board showing a move from 50 to 150. I asked if he cared what the market was and why it went from 50 to 150 as long as he could be long. He agreed that he would not care if he could catch that move. But then, seconds later, he says, "but how do we know why it went to 150?" We went round and round. He kept coming back to the idea that there must be a need for knowing why the market moved. He rationalized that if you knew the fundamentals you could surely add that knowledge to trend following and do even better.

It was a great example of a bright guy not seeing the trend following picture just yet. We agreed to continue the conversation as I promised to get him over the hump.

ROBTv.com Interview

March 15, 2006

I did a quick 6 minute live interview today at 2:50EST for Report on Business Television, the Canadian version of CNBC.

I did not get the feeling the interviewer was familiar with trend following trading completely, but I appreciated the opportunity to defend the strategy. I will try to put the video online here, but you can listen to the MP3 of the interview here.

On a side note, the remote location's lights, where this was filmed in Washington, DC, are not good on the eyes!

Face to Face Interviews

June 27, 2005

Face to Face Interviews - Audio Insights (MP3).

Bloomberg Radio Interview

May 18, 2005

A recent interview with Bloomberg Radio (6.5 MB MP3 audio file) and Mike Covel about trend following.

Miami Area Trend Follower

May 16, 2005

I interviewed a Miami area trend follower in his office this past Friday. While a younger man in terms of age, he has a track record exceeding 20% per year dating back to the early 1990s. He manages nearly $500M USD for clients.

In a surprising way, he quickly jumped into the philosophical elements of trend trading. All he could do was shake his head when I mentioned that some people still feel his kind of trading is bogus. "Do they not add up the profits" was his paraphrased response back.

He did drive home a crucial point about diversification from his perspective. Essentially he said, "what is the point of diversification if you can simply ride the big trenders each year while excluding the losers from your portfolio?" Of course this really would be the Holy Grail of trading, but perhaps as this trader hinted "some" are headed there as we speak.

Interview with Technical Analysis Magazine

May 15, 2005

My front cover interview with Technical Analysis of Stocks & Commodities Magazine is currently out in the June 2005 issue: read the interview now.

European Trend Trader

May 11, 2005

Conducting interviews over the last 5 months has revealed "niches" among trend traders. What do I mean? My book Trend Following covers a distinct grouping of price-based trend following traders. There are, however, traders who trade trends using different entry and exit methods. Instead of relying on price, some rely on specific mathematically based patterns for their entries and exits.

Today I had a conference call with one such trader. Based he Europe, he manages over $1 billion USD in client money and has a track record exceeding 10 years (this is a different trader than the one I met with last Friday in New York City). The big picture lesson? Even if most trend traders are highly correlated, if you work hard and do the research, there exist uncharted territories in trend trading yet to be conquered.

But does this mean this trader's philosophy is entirely different than trend followers? No, not at all. It means he has found a space where he thinks his method of entry and exit are superior. He still, like trend followers, must use great risk management to control his downside. And at the end of the day, he too needs trending markets to make money.

Aggressive Trend Follower

May 10, 2005

I interviewed a very successful trend follower last Friday in his New York City office. This man to some may seem young (he is in his mid-thirties), but his firm has been producing great returns for nearly 10 years. He got his start in Europe appealing primarily to non-US investors, but now reaches thousands of clients across the globe. Today he manages well north of $1 billion USD in client capital.

No one would have left this meeting without a deep appreciation for this man's aggressive nature. He doesn't wait for people to give him permission. He is 100% entrepreneur through and through aiming to make "it" happen. Some think the key to success is some secret formula, but the real key is to just get started. Just do it.

New England Trend Trader

April 17, 2005

I met with another great trend follower last week in his office. He has been trading as a trend follower since the early 1980's. Based in the New England area, he currently trades $1 billion in his fund. The big picture lesson? Humility. This man knows there are ups and downs. He understands there is volatility. Unlike some trend followers, he trades with less risk shooting for less of a return. With all of his success though, he is humble. He keeps grounded. I am sure there are up and coming traders full of ego, but this man is not one of them. He knows the market can take away what it gives and he is always worried about managing the downside. More to follow in the coming months...

Desire to Get Trend Following

April 16, 2005

Two weeks ago I met with a near billion-dollar hedge fund in their Texas office. Funded primarily from the principals' personal wealth (they hit it big with one of the top technology firms of all-time), their firm was seeking insights into trend following. They want to invest with trend following traders, but they are having a hard time wrapping their arms around a strategy (trend following) not rooted in fundamentals.

The three executives I met with at this hedge fund were more comfortable with a trader who traded one market alone. They liked the idea that a trader might be able to fundamentally know everything he could about that one market. They liked the idea of that type of skill compared to trend following skill. The trend following skill of reducing all markets to the common denominator of price just did not connect with them.

My gut says they will eventually put money with trend following traders. This group is very bright and they are doing extreme due diligence on trend following trading. Unlike some who dismiss trend following, these folks will get it since they are willing to learn something new.

Working from Home

April 09, 2005

I had the opportunity to visit with one of the best trend followers today. Living in the Chicago area, he works from his home office with a small staff. He might not be the largest trader (he does trade many hundreds of millions), but his performance is top notch. He is also just a fun and interesting person. No quant jock stiff here.

This trader, unlike some trend followers, has plenty of fundamental opinions. He reads voraciously on the markets and is not afraid to wear his emotions or concerns on his sleeve. This is precisely why he relies on a trading model.

He knows he can be volatile. He knows he can be emotional. And he is bright enough to never let those personal views interrupt his trading system. In his world, his well thought out automated trading strategy keeps it all in check.

Fundamental Switch

March 27, 2005

Do all trend followers start as trend followers? No.

Recently I spoke with a top trend follower who spent the first 15 years of his career trading, following and providing analysis on one market alone. He did not focus on other markets. How did he change?

His wakeup call came from another trader who was trading trends over multiple markets and spending little time to do it. How could this trend trader be doing other things during the day and not be focused on the constantly changing news and fundamentals. His lesson took quickly -- trend followers are not glued to screens during the day watching quotes. They trade systems and systems give flexibility.

A few years later, and after a bunch of hard work, the transition from trading one market was made. He now trades multiple markets relying on the "price" as his trading trigger for entry, exit and position sizing.

Trend Following Conversation II

March 25, 2005

Building on yesterday's conversation with a top trend follower, today in New York City I spent over half the day with one of the great trend following pros of all time. His trading career has spanned 30 years with many twists and turns. He is one very wise man - he gets it. This was the first time I had met this trader, but I did use a few of his quotes in my first book.

Why is he special? He is able to break down the complicated processes of life into chunks to better avoid the typical reasons people fail to accomplish their goals. He uses extreme focus on whatever entrepreneurial task he sets his mind too.

He also compares so many other aspects of life to trend following. One great example involved searching for oil. You will drill many wells with many of them coming up dry, but some will produce that black gold. If you know from the beginning that there will be many aborted attempts at success and that those attempts are a necessary part of finally finding oil, then you can accept the game as it is and deal with it.

It all gets back to a mindset of portfolio management. Not everything in a portfolio always makes money. Maybe once in a while everything will turn positive, but more often than not you will have the winners paying for the losers. Why do it this way? Like this great trader pointed out -- he can't predict and nor can anyone else.

Trend Following Conversation

March 24, 2005

I had a face to face conversation today in New York City with one of the best trend followers out there (trading many hundreds of $ millions). Like I mentioned the other day with another interview, this too is a man who I had never met before nor was he mentioned in my first book Trend Following.

What did I learn in a big picture sense? This man was influenced by a host of factors, but ultimately he came to his understanding of producing above average returns through his own detailed research. He pointed out that when he first started 10 years back he had no idea who the best trend followers were. He came to his aha moment through a series of small steps ultimately leading to the big idea: How can I capture those big moves, that arrive at unpredictable times, over a broad array of markets? His answer, now demonstrated with a track record exceeding +20% a year, was trend following trading.

LTCM: The Zero Sum Game

March 22, 2005

Yesterday I picked up the phone and called a top trend follower. His firm no longer reports their performance data, but they continue to trade billions making as much money as any one.

I had never talked with this man before and he was not in my first book Trend Following. Once his firm stopped reporting their performance data I forgot all about them -- until yesterday.

This trader was at first uneasy talking with me. "How did you find me?" "Why are you calling?" But he had a good sense of humor, even though he quickly said that he did not want to be quoted on the record. We talked for 45 minutes.

His insights:

1.) He backed up the idea that many more Long Term Capital Management's are ready to implode today. He said to look at the numbers of the arbitrage guys. He pointed out that for the last 4 years the arbitrage ("stat arb, convertible arb") guys are using more and more leverage to generate less and less return ("too much gearing"). He added, "They think they have found the Key to Rebecca and they have not found anything."

2.) He acknowledged that his billion dollar plus fund was on the other side of LTCM's (Long Term Capital Management) losses in the zero sum game: "We were the other side...they were an accident waiting to happen...now 7 years later the risks for these types of traders are just as great."

3.) Wall Street investment banks only want 35 year old traders. You get to be 50 and they don't want you. What's his point here? Wall Street ignores experience like Richard Donchian trading into his nineties. I know great trend followers ranging in age from 30 to 70. That's his point.

4.) "When people's emotions drive their decision making, systems traders have the luxury of being able to stick with it."

Geography is Not Important

March 18, 2005

I just finished a trip to meet with another great trend following trader who just happens to live and work nowhere near a major city. With a track record of 17 years (+20% a year), his performance alone is quite impressive, but his ability to do his "thing" on his terms is truly inspirational.

You have to also wonder about those people that attribute this man's performance (and other trend follower's performance) to "luck". If you think a trader is lucky, but you have not taken the time to sit down and personally meet with him (doing all the needed quantitative and qualitative homework), you miss the point. Great traders are NOT lucky over time. Their "secret" is hard work. That is their enduring edge.

Another Interview

March 10, 2005

I am in the middle of an extensive set of informational interviews with some of the great traders of today. I just finished a meeting yesterday with the President of a trend following firm who manages over $3 billion dollars for clients. A very down to earth guy, his most direct advice was for people to focus on their plan and not stay preoccupied with others' plans. He drove home the point that if you dare to be great, in whatever your chosen profession, standing outside the crowd is where the great rewards will be found. If you only want to work for the man, you can't be the man.

Trend Following in New York

March 02, 2005

I finished an interview today with a trend follower based in New York City. He has been at it for 30 years. His firm, like my recent Caribbean interview, also manages over $1 billion in client capital. In a wide-ranging conversation about trend following's lack of acceptance in some quarters, he pointed out that for many people "investing with skill" is hard to understand. Trend following is a skill. You can learn that skill or you can hire a trader who has the skill. But either way skill does matter when you are aiming to beat market averages. More to come in the near future...

Caribbean Interview

February 26, 2005

I recently finished an interview in the Caribbean with a top trader. He currently manages over $1 billion in client capital using strict mechanical models. His dedication to master his niche over many years (by no means an overnight success) should be an inspiration to all. More to follow in the coming months...

Trend Following Interviews

January 30, 2005

Just finished a trip to London. I interviewed three notables in the industry. One trader has a 15+ year track record and now manages over $1 billion USD trading as a trend follower. Before that number seems large (and it is) keep in mind that he was a one-man business but a few years ago. Another trader is relatively new to the public world and still runs a small and lean shop. He uses only the closing price each day and competes just fine with less data. Lastly, I spoke candidly with a professor who has written extensively on the subject of trend following trading. He agrees with me that to some degree many academics will have a hard time ever acknowledging the existence of trend following as it upsets the carefully crafted "efficient markets" foundation upon which they rest their reputations.

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