SI421: Taking CTAs Mainstream ft. Andrew Beer

How reliable is 60/40 when stocks and bonds fall together? Andrew Beer joins Niels Kaastrup-Larsen to question the return forecasts and diversification assumptions behind traditional asset allocation. They explore how a systematic, non-emotional approach to tactical investing can help portfolios adapt as markets change. The conversation also sets out how to grow the CTA/managed futures pie by explaining the strategy’s value in language investors understand. They discuss why diversification across managers and realistic expectations for uneven returns matter for building investor confidence and encouraging lasting allocations.

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Episode TimeStamps:

00:00 - Why portfolios may need a more tactical approach

01:04 - AI, entrepreneurship and the changing world of work

08:07 - Complex systems and why the future is so difficult to predict

09:47 - Trend following performance and what is driving returns

13:59 - Why the traditional 60/40 portfolio is being questioned

16:20 - The problem with long-term asset allocation assumptions

22:41 - Diversification, market timing and the historical advantage of bonds

27:01 - What 27 years of managed futures data tells us

31:51 - Crisis alpha across the dot-com crash, GFC and 2022

36:08 - Correlation, alpha and the diversification case for CTAs

38:12 - Drawdowns and why tactical strategies can preserve capital

44:55 - Sharpe r