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Insights

Honey, I Shrunk the Trend-Following April 2024

How much trend-following should investors hold in a portfolio?

Yash Panjabi, Graham Robertson
Views from the Floor - History Shows What to Expect from Trend-Following When Rates Are Being Cut 23 January 2024

Having reached an inflection point in the rates cycle, investors may be wondering what to expect from trend-following strategies.

Man Group
What's Trending: Trend and Long/Short Quality: Attack Wins You Games, Defence Wins You Titles November 2023

How can we protect against sharper, faster sell-offs? Or, better yet, how can we profit from them?

Yash Panjabi, Graham Robertson
What's Trending: Movin' on Up October 2023

How have trend-following approaches tended to perform following a market shock? And why market reversals are not occurring as frequently as it might seem.

Rupert Goodall
What's Trending: If it Moves, Monetise It September 2023

How can trend-following’s “crisis alpha” credentials be monetised when there’s no crisis?

Graham Robertson
What's Trending: A Different Point of Skew July 2023

Sudden market shocks often bring into question trend-following's 'crisis alpha' credentials: its convexity profile or skewness. Aren't trend-following strategies supposed to protect on the downside? The answer lies in the period over which we want protection.

Graham Robertson, Rupert Goodall
What's Trending: Trend-following - What's Not to Like? May 2023

Trend-following strategies perform as well as equities in the long term, yet get there with lower risk, smaller drawdowns, and do best when equities are at their worst. What’s not to like about that?

Graham Robertson
What's Trending: Trend Towards the End Game April 2023

As defined benefit pension schemes move towards their end game, a multitude of conundrums – such as liquidity and diversification – may arise along the way. To these, we present trend-following as being uniquely poised to offer a solution.

Rupert Goodall, Harry Moore
What's Trending: Rolling with the Punches April 2023

When market volatility spikes, trend-followers’ flexibility means they are uniquely prepared to re-establish positions if the prior trend resumes or a new one emerges.

Rupert Goodall
The Need for Speed in Trend-Following Strategies January 2023

Why reactive trend-following strategies are the wingman of traditional investors.

Adi Mackic
Gaining Momentum: Where Next for Trend-Following? June 2022

We investigate trend-following’s strong performance in the first five months of 2022 and consider the outlook for the strategy given current macro-economic themes.

Graham Robertson
The Best Strategies for Inflationary Times August 2021

Investors currently face the challenge of having little experience and no recent data to guide the repositioning of their portfolios in the face of heighted inflation risk. We provide some insight.

Henry Neville, Campbell R. Harvey, Otto van Hemert, et al.

Discover Trend-Following

 

In this episode we dive into the reasons why trend following strategies work and importantly, when they work. Joining Peter van Dooijeweert is Otto Van Hemert, Director of Core Strategies at Man AHL, co-author of the award-winning paper Best Strategies for Inflationary Times which highlights trend as one such solution.

 

Man AHL – Investing For You

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Investors should note that, relative to the expectations of the Autorité des Marchés Financiers, this Strategy presents disproportionate communication on the consideration of non-financial criteria.

One should carefully consider the risks associated with investing, whether the strategy suits your investment requirements and whether you have sufficient resources to bear any losses which may result from an investment:

  • Investment Objective Risk - There is no guarantee that the Strategy will achieve its investment objective.

  • Market Risk - The Strategy is subject to normal market fluctuations and the risks associated with investing in international securities markets and therefore the value of your investment and the income from it may rise as well as fall and you may not get back the amount originally invested.

  • Counterparty Risk - The Strategy will be exposed to credit risk on counterparties with which it trades in relation to on-exchange traded instruments such as futures and options and where applicable, ‘over-the- counter’("OTC","non-exchange") transactions. OTC instruments may also be less liquid and are not afforded the same protections that may apply to participants trading instruments on an organised exchange.

  • Currency Risk - The value of investments designated in another currency may rise and fall due to exchange rate fluctuations. Adverse movements in currency exchange rates may result in a decrease in return and a loss of capital. It may not be possible or practicable to successfully hedge against the currency risk exposure in all circumstances.

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  • Concentration Risk - The Strategy invests in a limited number of investments may be held which can increase the volatility of performance.

  • Financial Derivatives - The Strategy will invest financial derivative instruments ("FDI") (instruments whose prices are dependent on one or more underlying asset) to achieve its investment objective. The use of FDI involves additional risks such as high sensitivity to price movements of the asset on which it is based. The extensive use of FDI may significantly multiply the gains or losses.

  • Leverage - The Strategy's use of FDI may result in increased leverage which may lead to significant losses.

  • Emerging Markets - The Strategy may invest a significant proportion of its assets in securities with exposure to emerging markets which involve additional risks relating to matters such as the illiquidity of securities and the potentially volatile nature of markets not typically associated with investing in other more established economies or markets.

  • Non-Investment Grade Securities - The Strategy may invest a significant proportion of its assets in non-investment grade securities (such as “high yield” securities) are considered higher risk investments that may cause income and principal losses for the Strategy. They are instruments which credit agencies have given a rating which indicates a higher risk of default. The market values for high yield bonds and other instruments tend to be volatile and they are less liquid than investment grade securities.

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