Man Group explores how trend-following strategies—diversified across many asset classes—capture unpredictable market moves and provide “crisis alpha” through disciplined, multi-market positioning. They emphasize that diversification enhances performance and reliability, especially during turmoil, as trend signals often emerge later than anticipated but can deliver outsized resilience when correlations spike or volatility surges.
Truth or Trend: Separating Signal from Noise
Man Group
Research
17 Pages
Key Takeaways
Diversification power: Trend-following across 150+ markets enhances information ratio via low inter-market correlation.
Crisis alpha sources: During stress, trend strategies often outperform via fixed income, commodities, or FX rather than equities.
Timing uncertainty: Trends are hard to predict—diversification, not market timing, ensures capture of emerging signals.
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