Investing with the Trend: A Rules-based Approach to Money Management

Chapter 16Putting Trend-Following to Work

What better way to see how all this information on rules-based trend analysis can actually be put to work and used in a successful practice: The following are interviews with Jud Doherty, president, Stadion Money Management, LLC, and Will McGough, VP Portfolio Management. Stadion is a money management company that, in 2004, Defined Contribution news named Advice Provider of the Year in the retirement plan industry. Stadion currently has more than $6 billion under management in separately managed accounts, six mutual funds, and retirement 401(k) plans.

When did you first get interested in the markets?

(Jud) My first job out of college in 1991 was in 401(k) recordkeeping, which was an operational role. But it gave me exposure to the mutual fund world and insight into the behavior of the typical investor. To gain greater investment knowledge, I entered the CFA program, which led to the next phase of my career, which was institutional investment consulting.

(Will) From a young age I decided to focus my studies on math over literature, after all there are only 10 basic numbers (counting 0) versus 26 letters, so the odds were in my favor! Mathematics was a natural segue to financial market interest as I grew older. I was also fortunate enough to have family members who tweaked my interest in the markets. My grandfather was a big IBD proponent and gave me a few shares of stock after I graduated from high school. Watching the volatility during ...