The Meb Faber Show: “This is the Most Misunderstood Investing Strategy”
The Meb Faber Show: “This is the Most Misunderstood Investing Strategy”
Today’s guest is Jerry Parker, founder and CEO of Chesapeake Capital and one of the original Turtles trained by Richard Dennis. Together we run the Cambria Chesapeake Pure Trend ETF (MFUT).
In today’s episode, Jerry explains why managed futures isn’t the same as trend following. He breaks down the math and psychology of hunting outliers, letting a few winners pay for many small losses, and why he’d never chase crisis alpha at the cost of returns. To close, Jerry explains why MFUT trades individual stocks rather than just indices.
Learn more about the Cambria Chesapeake Pure Trend ETF www.cambriafunds.com/mfut
Have questions? Reach out to us any time at info@cambriainvestments.com.
To see links or read the transcript of the episode, visit us at: https://www.themebfabershow.com/episo…
0:00 Jerry Parker
3:09 Trend following vs managed futures
11:00 Misconceptions about crisis alpha
18:42 Portfolio construction, volatility targeting, and strategy complexity
23:47 Correlation, diversification, and trend following in stocks and commodities
32:18 Performance reflection and importance of sticking to a strategy
37:46 Allocation challenges and memorable recent trades
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Past performance is not indicative of future results. The material above has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy.
The Cambria ETFs are distributed by ALPS Distributors Inc., 1290 Broadway, Suite 1000, Denver, CO 80203, which is not affiliated with Cambria Investment Management, LP.
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Have questions? Reach out to us any time at info@cambriainvestments.com.
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