Christopher Foster, CEO, is the architect of Blackheath's Sentiment Strategy and Portfolio Manager of all assets in the Sentiment program. It was during one of his earlier tenures at the Friedberg Mercantile Group (FMG) that he first became familiar with analyzing crowd behaviour and sentiment indicators, which laid the basis for Blackheath's Sentiment Investment Strategy.
In this radio feature he shares his thoughts on why he believes the Sentiment Strategy is unique, why the fund has performed positively in each year since it was incepted in March 2003, and why it will continue to be possible to trade based on hard wired human biases and crowd behaviour...
Listen to the complete feature Trading based on hard wired human biases and crowd behaviour
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Could you elaborate on your Sentiment Strategy and why you believe it is "unique"?
Your fund has performed positively in each year since it was incepted in March 2003 (including in 2008 and 2011)...can you tell us how and why it has been, is, and will continue to be, possible to trade based on hard wired human biases and crowd behaviour?
How do you generate your trade ideas (as in the opportunity set) and how do you determine the appropriate duration and leverage?
How does your strategy cope with the (“non-human”) Algo-executions? And what have you observed?
Why & When does your strategy typically tend to perform negatively?
What according to you are the threats and risks - how do you look to minimise and/or to exploit those? (How do you cope with systemic risk, counter party risk, geo-political unknowns etc?)
Have you changed your strategy to cope with an investment landscape that has changed considerably since 2003? (for e.g. liquidity levels)
Does running a fund based out of Canada offer specific advantages?