The expression “buy and hold” is often mentioned in the equity markets. This means you buy a stock or a mutual fund and hold it for extended periods. It is a logical view as there is a growth component in…
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Over my 30 plus years in the capital markets, it appears there is never a bad time to discuss diversification, however, the current market environment suggests a more inviting moment to discuss the topic as noted in Figure 1 of…
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Trend Following Trading Strategy Trend following is a strategy to capture a directional (rallying or declining) movement of a given market. Managed futures funds are historically known for using trend following, but it can be applied to any asset…
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Breaking Down Discretionary Trading Methodology Of the three common methods of trading, systematic, discretionary, and gray box (a hybrid of the first two methods), this article focuses on discretionary trading. Note that this should not be confused with FINRA’s…
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Breaking Down Systematic Trading Methodology What is Systematic Trading Methodology? Systematic trading methodology (not to be confused with systematic risk) is based on the premise of automated rules-based strategies1 usually generated from a computerized model (algorithms). It offers a…
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Coquest Advisor’s “Managed Futures Strategies In A Portfolio” provides insight into the characteristics of strategies that utilize futures and foreign exchange markets. Investors looking to add diversification to their portfolio will gain knowledge about how managed futures strategies may impact…
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Investment strategy descriptions and definitions provide a method for classifying and aligning managers with industry standards, which fosters the growth of peer groups and the opportunity for further analysis. Coquest Advisors utilizes the following description in its due diligence process…
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Investment strategy descriptions and definitions provide a method for classifying and aligning managers with industry standards, which fosters the growth of peer groups and the opportunity for further analysis. Coquest Advisors utilizes the following description in its due diligence process…
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Investment strategy descriptions and definitions provide a method for classifying and aligning managers with industry standards, which fosters the growth of peer groups and the opportunity for further analysis. Coquest Advisors utilizes the following description in its due diligence process…
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Investment strategy descriptions and definitions provide a method for classifying and aligning managers with industry standards, which fosters the growth of peer groups and the opportunity for further analysis. Coquest Advisors utilizes the following description in its due diligence process…
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The following strategy description will help define the strategy bucket that Coquest Advisors includes as part of their due diligence process. Technical -- Non-Trend Non-Trend technical strategies utilize technical price information to anticipate future changes in market prices. These…
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Investment strategy descriptions and definitions provide a method for classifying and aligning managers with industry standards, which fosters the growth of peer groups and the opportunity for further analysis. Coquest Advisors utilizes the following description in its due diligence process…
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Investment strategy descriptions and definitions provide a method for classifying and aligning managers with industry standards, which fosters the growth of peer groups and the opportunity for further analysis. Coquest Advisors utilizes the following description in its due diligence process…
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Investment strategy descriptions and definitions provide a method for classifying and aligning managers with industry standards, which fosters the growth of peer groups and the opportunity for further analysis. Coquest Advisors utilizes the following description in its due diligence process…
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Investment strategy descriptions and definitions provide a method for classifying and aligning managers with industry standards, which fosters the growth of peer groups and the opportunity for further analysis. Coquest Advisors utilizes the following description in its due diligence process…
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Mark Shore, Director of Educational Research for Coquest Advisors, recently presented research on protecting your tail from correlation risk. This research is composed of two questions: 1) In the aggregate, do all hedge fund strategies offer diversification? 2) When analyzing…
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In the managed futures course I teach at DePaul University in Chicago, the first question I ask the students is “what is risk?” The usual response is that it relates to losing money in the markets. Yes, this is true.…
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When I hear the phrase “Are you diversified?” it sometimes reminds me of the Jimi Hendrix album “Are You Experienced?” Perhaps ask yourself the question, are you experiencing real portfolio diversification? Often when investors think about diversifying their portfolio, they…
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In 2018, the market witnessed a return of higher volatility, and the last quarter of the year was particularly concerning. However, it was not that surprising if you examine it from a historical perspective. It was this crucial and timely…
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As the discussions of trade wars and tariffs persisted throughout 2018 and into 2019, it may have influenced a sense of uncertainty in the global financial and commodity markets as companies might have to rethink their supply chains and manage…
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There is both academic and practitioner research literature that discusses the use case of managed futures as potential benefits when employed with large cap equity indices[i], such as the S&P 500 index (SPX) for portfolio allocation. However, there is very…
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From speaking at conferences and teaching workshops, I’ve noticed increased volatility conversations as investors are asking if we entered a new volatility regime. It helps to understand how equity volatility from a historical perspective behaved as it cycled across various…
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Over the years, I’ve heard the adage “we live in uncertain times,” but can we quantify that statement? Can one point to evidence of living in uncertain times? Does uncertainty vary over time and between topics? The term uncertainty commonly…
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Investment volatility or as it’s known on the street as “vol,” is often measured by the standard deviation. Investors frequently use the standard deviation as a proxy for risk. But is the standard deviation a proxy for risk or a…
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