Monroe Trout is an adviser in basic products (CTA), when he started trading he was frequently mentioned as one of the young promises of investments. Consulting the quarterly reports of the accounts managed by the, in terms of measures of return / risk, the performance of the Trout was better than that of more than one hundred directors of coverage. There were a few that exhibited a higher average annual yield, and even less with the smaller credit arrangement (although these CTAs had much lower returns), but no one was close to matching their return to risk combination.
Over a period of five years surveyed, their average performance was 67%, but, surprisingly, their biggest loss during that entire period was just over 8%. As another demonstration of its consistency, in which it had been profitable in 87% of all months, it is surprising to discover that in the period in which Trout operated (I manage public money in 1986), even the legendary and extraordinary traders like Paul Tudor Jones they do not come close to your return / risk return figures. One of the things that impresses Trout is that he does not flaunt his successes, he sees himself as a businessman whose job is to make money for his clients.
Originally posted 2021-05-01 09:52:01.