Improving Predictability of Future Results

The general industry disclaimer is “Past performance is not necessarily indicative of future results”. However, what if we could identify and select CTAs with the characteristics necessary to produce “more” predictable future performance? Rather than simply chasing the hot hand, investors and allocators could improve their chances for long term success by focusing on selecting CTAs with a strong probability of repeating past performance in the future. More than 20 years ago, when Brandywine developed our Benchmark trading program, we faced the same question. How could we increase the odds that our future performance would match the past tested performance…

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