The benefits (and pitfalls) of trend-based strategies

The next generation of trend-based strategies

Stacey Ash, investment manager at iFunds Asset Management, takes a closer look at the next generation of trend-based strategies and how they can be used in portfolios.

‘The trend is your friend', the old adage goes, and the trend has been living up to its reputation. Hedge funds using trend-based strategies have outpaced the majority of their peers so far this year, and portfolios using this approach were among the strongest performers in the IA Flexible sector in 2014. Trend-based investment strategies have historically been largely the preserve of institutional investors with access to large trading accounts and specialised exchanges. The advent of low-cost exchange traded products has changed all that though. Exchange traded funds, exchange trade...