SI214: Trend Following & CTA Replication ft. Andrew Beer

Published: Oct. 16, 2022, 7 a.m.

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Today, we are joined by Andrew Beer, Managing Member at Dynamic Beta Investments LLC, for a conversation on managed futures replication, ETFs and how they have found a way to get these essential strategies into more investor portfolios. We discuss how they do they have constructed the replication strategies and how Andrew have been able to gain enormous traction among advisers. We also touch on why Andrew does not include crypto and how the price of ETF is established. We take lots of questions and round our conversation off by discussing why managed futures have become an essential part of a portfolio and why Andrew believe that the demand for the strategy will continue to be strong for years to come and much more.

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Episode TimeStamps:

00:00 - Intro

01:57 - This week in Trend Following?

06:38 - Industry performance update

08:34 - A bit of background to Andrew and his work

15:12 - The mechanics of their replication strategy

20:20 - Getting correlation right...is that enough?

34:25 - What about flat periods?

41:19 - What is the hardest part of what you do?

44:29 - Q1, Brian: Is there any tax advantages to your product?

46:01 - Q2, Jerry: What does your investor base look like?

53:19 - Are cryptocurrencies part of your universe?

57:16 - Q3, Jerry: How is the price of the ETF made up?

59:24 - Q4, Mike: Will capacity become an issue at a certain level of AUM like it does for traditional CTA...'