Here’s a question which comes up time and time again, and I’ve heard it again this week.

Why invest in a trend following CTA when I can buy and hold the S&P 500 for “zero cost” and end up making money when holding it for multiple years?

Note that I’ve put quotation marks around “zero cost” because it surely ain’t for free, but that’s a topic for another blog post.

As far as I’m concerned, I still need (and want) to meet the investor who has indeed remained invested in the S&P 500 for multiple years, let alone decades, without…

Moritz Seibert

Quant-driven trader, one of the Two Quants at and CEO/CIO at Munich Re Investment Partners.

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