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Resolve's Gestalt University


Nov 14, 2022

It was our great privilege to welcome Mark Rzepczynski this week. Mark has over 25 years of experience in financial markets, is a former finance professor and writes frequently about global markets and quantitative investing. Our conversation covered:

  • His early years, ‘forged in the chaos of the trading pits’
  • Pursuing a PhD and recognizing a career in research was not for him
  • Working for John Henry – an apprenticeship in trend following
  • Finding one’s comparative advantage and sticking to it
  • Why trend following had a bad reputation when the Efficient Market Hypothesis (EMH) was still regarded as the law of the land
  • Trend following as the first derivative of the EMH
  • Understanding how markets actually behave, as opposed to how they should
  • Prices are primal
  • Uncertainty as the gap between what you don’t know and what you should know
  • The interplay between price action and narrative
  • Specialists can be tremendously myopic, while trend followers seek to be the ultimate, rules-based generalists
  • Black Box vs Glass Box
  • Trend following as a signal to noise problem
  • The dirty secret of trend-following – when most of the money is actually made
  • And much more

This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of ReSolve Asset Management Inc.

 

*ReSolve Global Inc. refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global Inc. is a registered person with the Cayman Islands Monetary Authority.