Trend Following 8: Managed Futures, Hedge Funds, and Portfolio Construction

Three papers explore various investment strategies. The first examines the diversification benefits of managed futures compared to hedge funds, finding that combining both enhances portfolio performance by reducing volatility and tail risk. The second analyzes the effectiveness of carry and trend-following strategies across different asset classes, concluding that combining positive carry and positive trend investments yields superior risk-adjusted returns. The third critiques the mutual fund and hedge fund industries, highlighting excessive fees, hidden costs, and a misalignment of incentives between fund managers and investors, advocating for a more transparent and investor-centric approach.