NOVEMBER 5, 2008 Some Trend-Following Funds Are Winners in Rough Market

[nkhoi]

A particular category of trend-following funds called managed futures funds have outperformed hedge funds this year by making a killing from the dollar's rally, the plummet of emerging markets and the collapse of commodities.
http://sec.online.wsj.com/article/SB122584566148999573.html

 

[makloda]

Anyone remember the "trend following delusion shattered" thread LOL

 

[Daal]

of course morons like surfer only look at evidence that confirms his view

 

[EPrado]

Surf is going around saying the trendfollowers got lucky. Yep...guys like Dunn and JWH are up 30 to 80% in their funds this year...all luck.

Funny how Surf is real quiet about this subject...but was all over these guys when they hit a rough patch.


How is Vic Neiderhoffer doin these days?

Oh..thats right...his fund is gone as he blew out...again.

 

[Random.Capital]

Quote from EPrado:

Surf is going around saying the trendfollowers got lucky.

Well he's right on that one. Nobody knows which buy or sell signal turns into a bull or bear "trend". What he's missing is that this "luck" happens with considerable frequency.

But it takes discipline - trend hunting is high-reward but comes with significant drawdowns. Smart money management is crucial.

 

[EPrado]

Quote from Random.Capital:

Well he's right on that one. Nobody knows which buy or sell signal turns into a bull or bear "trend". What he's missing is that this "luck" happens with considerable frequency.

But it takes discipline - trend hunting is high-reward but comes with significant drawdowns. Smart money management is crucial.

So guys like SAC and Citadel got unlucky in October?

Like you said, it comes down to money mgmt. Over time if you look at their whole careers, guys like Dunn and JWH have had very good money mgmt. Their returns since inception are great. Just gotta be able to roll with their volatility.

I guess Merrill Lynch is bumming they pulled 600 Mil outta JWH at the bottom....but then again MER isnt exactly the brightest bunch on the block.

 

[Rodney King]

Quote from EPrado:

How is Vic Niederhoffer doin these days?

A few grafs today on his brother toward the end of: http://nytimes.com/2008/11/10/business/economy/10hedge.html

 

[marketsurfer]

Quote from EPrado:

Surf is going around saying the trendfollowers got lucky. Yep...guys like Dunn and JWH are up 30 to 80% in their funds this year...all luck.

Funny how Surf is real quiet about this subject...but was all over these guys when they hit a rough patch.
.

one of the funniest things ever JWH--"The Tulip Trend Fund" Wanna bet that name has prescience?

surf
http://en.wikipedia.org/wiki/Tulip_mania

 

[EPrado]

Quote from Rodney King:

A few grafs today on his brother toward the end of: http://nytimes.com/2008/11/10/business/economy/10hedge.html

His brother is and always has been a much better trader/fund manager.

Perhaps he was adopted and doesnt have the "blow up" DNA.

 

[EPrado]

Quote from marketsurfer:

one of the funniest things ever JWH--"The Tulip Trend Fund" Wanna bet that name has prescience?

surf
http://en.wikipedia.org/wiki/Tulip_mania

You are the best Smurf. Ripping on a guy and his fund who has been around for 25 yrs and made his investors a fortune.

Clearly the huge year that JWH is having is killing you.


Good thing though your boy Neiderhoffer blew out ....could you imagine the money he would have lost playing that one trick donkey show he always did. Selling puts .

Hopefully after torching all his investors money he didnt put up his own money...cause if he did, I would imagine there will be another silver sale going on .