Podcasts Business Investing Top Traders Unplugged TTU34: The Art of Risk Management ft. Luc Van Hof of Capital Hedge 2of2

TTU34: The Art of Risk Management ft. Luc Van Hof of Capital Hedge 2of2

Published: Sept. 25, 2014, 6:28 a.m.

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In the second part of our interview with hedge fund founder Luc Van Hof, we dive into the philosophy and creation behind his trading models. We also discuss why he is a risk averse person, what hobbies help him stay focused at work, and what investors and fund managers can do to grow their business and trade smarter.

Welcome to Part 2 of our conversation with Luc Van Hof.

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In This Episode, You\\u2019ll Learn:

  • How to avoid model decay and how to avoid the risk when the model may stop working in the future.
  • How to diversify your types of models \\u2013 dynamic filtering that takes place. Automatic de-leveraging when a certain market goes down.
  • How Luc chooses his models and why he does:
  • Short term trend following
  • Short term mean reversion
  • What concepts for his models repeat themselves over and over again, pattern recognition.
  • About volatility risk premium strategies.
  • How he tests his models that have so many moving parts in short timeframes.
  • His views on position sizing.
  • What investors should look at in terms of risk management
  • Maximum Exposure for a trade \\u2013 determines the maximum risk that a trade can generate for the total of the portfolio.
  • How Luc deals with drawdowns.
  • Why he is a risk averse person.
  • Why he is still researching other trading ideas when he thinks he\\u2019s found a way that mitigates risk effectively.
  • How he gets his ideas from math puzzles, reading about geometry and logic.
  • Why investors should look at the predictability of returns and how to convince investors what and how you are going to trade is something that is going to work.
  • Why discipline is the main characteristic that people need to be a successful fund manager.
  • The books that he recommends for managers starting out wanting to be successful.
  • How his hobbies such as nature, reading, and music help to keep him balanced in a busy financial world.

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Resources & Links Mentioned in this Episode:


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