Transtrend: Benchmarks

The Dutch-based trend follower Transtrend offers insights into “benchmarks”:

Benchmarks problem: “Hedge funds” are not an asset class because different hedge fund strategies are fundamentally different in their:

1. Source of return.
2. Shape of distribution of returns.
3. Correlation structure with traditional asset classes.

Also keep in mind:

1. Hedge fund styles can differ even more from each other than traditional asset classes can.
2. A benchmark is only meaningful if it acts as a proper description of an investment strategy (such as ‘Equity long only’ or ‘TrendfollowingCTA’s’).
3. Benchmarking does not excuse the investor for not understanding the investment.

Trend Following Products

Review trend following systems and training:

Michael Covel Trend Following Products
Michael Covel Trend Following Products

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