SI410: The Next Evolution of Trend Following ft. Nick Baltas

Niels Kaastrup-Larsen and Nick Baltas explore how artificial intelligence, thematic investing and narrative momentum are beginning to reshape systematic investing. Alongside a review of recent CTA performance, they discuss new research on expanding trend following universes, defensive portfolio construction and portable alpha before taking a deep dive into the growing role of AI and thematic risk models. The conversation examines whether future investment signals may come from more than price alone and how systematic investors can combine traditional trend following with new sources of information without losing the discipline that has defined the strategy for decades.

-----

50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE

-----

Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.

IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.

And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.

Learn more about the Trend Barometer here.

Send your questions to info@toptradersunplugged.com

And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.

Follow Nick on Twitter.

Episode TimeStamps:

00:00 - AI, memories and the changing pace of innovation

06:32 - How investment firms are integrating artificial intelligence

13:01 - CTA performance and the trend following environment

20:34 - Expanding the market universe for trend followers

28:17 - Building the perfect hedge with trend following

34:25 - Portable alpha and leveraging trend strategies

37:44 - Introducing thematic investing and missing factors

44:59 - How narratives create momentum in financial markets

50:43 - Measuring thematic strength versus price momentum

58:41 - Can thematic investing be backtested?

01:04:14 - Are narratives really different from traditional sectors?

01:07:06 - Final thoughts on AI, res