Tough start of the year for the trend following Wizards, with just two of them posting positive results.. As a result, lots of red in the table.
Additions: New Wizards
Thanks to all the readers who submitted suggestions for additions into the list. I added four new managers, taking the list to 30 constituents:
- Covenant Capital Management
- Estlander & Partners
- Lynx Asset Management
- Quantica Asset Management
For each of these, I picked the most “trend-following” oriented program. I received several more suggestions that I checked; some were too “emerging” to be on the list but a good part of the established managers showed too little an allocation to trend following strategies. Some of the big ones having less than 50% allocated to trend following (it could be argued that this is the case for Lynx above, with an advertised allocation to trend following at 50% only, but I still decided to include them because of their very large size, and for a bit of “geographical diversification”).
Checking back the managers already on the list, I could see that this “trend” of adding extra strategies to a core trend following one has been growing and not all of the Wizards have a “good old” traditional 100% allocation to trend following like the Dunn, Chesapeake, Campbell, Mulvaney, etc. (for example, Abraham only lists trend following as 45% of their program – coincidentally they are one of the managers being up last month). As a reader was pointing out, this is probably a reason for the increased divergence in the Wizards performance. Something worth investigating when going over past performance of the Wizards.
Please find the full results for January 2014 below:
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