In the second part of our conversation with AHL founder and Aspect Capital Director, we dive into the details of his firm’s strategies and models. We explore how the models evolve, how he deals with risk management, and his advice for would-be fund managers. Investors and managers alike will gain deep knowledge from this episode.

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In This Episode, You’ll Learn:

How their model changes are very small and gradual.
What the Diversified Program of Aspect looks like today.
How Martin weights the portfolio between financial markets and commodity markets.
How his model allows them to grow the company.
About foreign exchange markets and liquidity.
The 2008 crisis and how it affected their models.
The real secret behind trend following and how it works.
How they are making the transition to a “box-to-box” execution approach.
How Martin defines risk and risk management.
About model risk.
How their risk team operates.
Why correlations are a crucial to look at.
How drawdowns are different than open-ended risk and how to explain that to investors.
Why succession planning is not an issue for the company right now.
What his biggest challenge is.
The evolution that is going on in the managed futures industry in general.
How small firms are struggling but may see opportunities in the future.
What Martin would ask David Harding if he were interviewing him.
What investors forget or don’t know to ask.
Martin’s advice for managers or would-be managers.
A vacation the Martin took his family on, that turned traumatic for a moment and that British Airways learned a lot from.

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Resources & Links Mentioned in this Episode:

Martin suggests books by Antti Ilmanen.
Learn more about David Harding and Winton Capital Management.

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

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TTU38: The Real Secret Behind Trend Following & How It Works ft. Martin Lueck of Aspect Capital – 2of2

Top Traders Unplugged

TTU38: The Real Secret Behind Trend Following & How It Works ft. Martin Lueck of Aspect Capital – 2of2