TTU88: The Importance of Explaining the Why ft. Andrew Baxter of Cambridge Capital Management – 2of2

In this episode, we dive into the models and processes that Cambridge Capital and Andrew Baxter use to manage risk, research new ideas, and grow their business. We also talk about the importance for managers to explain why they do what they do, rather than just what they do.

Listen in to learn more about the future of the managed futures industry and how to be successful in it.

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In This Episode, You’ll Learn:

• How his forecast method works
• How he develops his basic models
• How they come up with new ideas for models at Cambridge Capital
• The various short term and long term models that they employ and how they use them
• When they make interventions to the system
• The risk management they use and why they have a risk budget
• Why they are continuously adjusting their risk in the market
• The drawdowns that they expect to see in their program and the ones that they have been through
• Why he thinks CTA firms had significantly higher drawdowns in 2013 then they had ever had before
• How their research cycles work
• How to compare a life track record with a simulation of the current program
• Why we should look at why managers do things more than what they do
• Why raising assets is the biggest challenge his firm faces today
• What it takes to become a great fund manager
• The skill that he would pass onto his children
• The challenges he sees for the CTA space

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Resources & Links Mentioned in this Episode:

• Extraordinary Popular Delusions and The Madness of Crowds
• The Winner’s Curse
• books by Reinhold Messner

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