Corey Hoffstein: Trend following returns often stem from related markets moving together

Corey Hoffstein: Trend following returns often stem from related markets moving together
Trend following boosted by market alignment

Corey Hoffstein writes that strong trend following performance does not usually result from a large number of independent opportunities.

Instead, he explains that these returns often arise when multiple related markets move in the same direction at the same time, leading to a concentrated source of trend-following profits.

Hoffstein has highlighted recent milestones in asset growth, noting $4bn ETF AUM and $62bn platform AUM at Tidal. He also commented on an unusual occurrence in the MSCI USA Enhanced Value Index backtest after its May 29 rebalance. These observations come as trend-following performance draws attention.

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