February 28, 2012

Bill Dunn interview

William Dunn: Legendary CTA Building Legacy To Last

FM: Managed futures in general, trend following in particular, has proven itself as a valid asset class/ strategy but it is still not widely accepted in some circles. Why is this?

Bill Dunn: Probably this is because managed futures is not understood well by the public. Absent education, it is difficult for investors to stick with a system through a drawdown, and so volatility is an impediment to those that chase returns, or who are greatly troubled during the drawdowns. Many people take cues from the mainstream media, which may encourage emotional decisions and often the mainstream media doesn't present managed futures. However, our industry should have done a better job educating the media and the public.