Jerry Parker on Big Game Hunting in the Market | #647

Today’s guest is Jerry Parker, founder and CEO of Chesapeake Capital and one of the original Turtles trained by Richard Dennis. Together we run the Cambria Chesapeake Pure Trend ETF (MFUT).

In today's episode, Jerry explains why managed futures isn't the same as trend following. He breaks down the math and psychology of hunting outliers, letting a few winners pay for many small losses, and why he'd never chase crisis alpha at the cost of returns. To close, Jerry explains why MFUT trades individual stocks rather than just indices.

Learn more about the Cambria Chesapeake Pure Trend ETF www.cambriafunds.com/mfut

Have questions? Reach out to us any time at info@cambriainvestments.com.

Full show notes: Link

(0:00) Jerry Parker

(3:09) Trend following vs managed futures

(11:00) Misconceptions about crisis alpha

(18:42) Portfolio construction, volatility targeting, and strategy complexity

(23:47) Trend following in individual stocks 

(32:18) Performance reflection and importance of sticking to a strategy

(37:46) Allocation challenges and memorable recent trades