Moritz Heiden & Moritz Seibert – Trend-Following Spreads (S7E25)

Moritz Heiden & Moritz Seibert – Trend-Following Spreads (S7E25) – Flirting with Models

Mentioned

Bullish

ALTMARKETS— Smaller, obscure markets like California carbon emissions, oats, and sunflower seeds offer valuable diversification and trend opportunities that larger CTAs can't access due to capacity constraints.
SPREADS— Calendar and product spreads offer fundamentally different trend opportunities than outright futures, with independent trends at different points in time that add valuable diversification.
DIVERSIFICATION— Systematic diversification across many uncorrelated markets and spreads is essentially free alpha that improves risk-adjusted returns without additional computational cost.

Bearish

MGMTFEES— Management fees in hedge funds are fundamentally misaligned with investor interests and should be eliminated in favor of performance-only compensation.
PREDMARKETS— Prediction markets have fundamental structural flaws including manipulation risk, murky resolution processes, and adverse risk profiles that make them unsuitable for systematic trading.

Not investment advice.