SI372: QIS Unboxed: Rules, Wrappers, and Reality ft. Nick Baltas

<p>As equity markets grind higher and trend strategies navigate sharp reversals, Moritz Siebert welcomes Nick Baltas of Goldman Sachs for a conversation that moves beyond performance to examine structure. Together they unpack the machinery of the $1.3 trillion QIS industry - from index design and client behavior to the subtle forces shaping capacity and crowding. They discuss how trading speed has become a key axis of dispersion, why volatility remains the hidden cost in systematic portfolios, and what resilience in markets might really be masking. This is not just about strategy. It’s about how products scale, and how ideas hold.</p><p><strong>-----</strong></p><p><strong>50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - </strong><a href="https://dunncapital.com/DUNN%2050-Year%20Book-TTU" rel="noopener noreferrer" target="_blank"><strong>CLICK HERE</strong></a></p><p>-----</p><p><br /></p><p>Follow Niels on <a href="https://twitter.com/toptraderslive" rel="noopener noreferrer" target="_blank"><strong>Twitter</strong></a>, <a href="https://www.linkedin.com/in/nielskaastruplarsen" rel="noopener noreferrer" target="_blank"><strong>LinkedIn</strong></a>, <a href="https://www.youtube.com/user/toptraderslive" rel="noopener noreferrer" target="_blank"><strong>YouTube</strong></a><strong> </strong>or via the <a href="https://www.toptradersunplugged.com/" rel="noopener noreferrer" target="_blank"><strong>TTU website</strong></a>.</p><p><strong>IT’s TRUE </strong>? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written&nbsp;<a href="https://www.toptradersunplugged.com/Ultimate" rel="noopener noreferrer" target="_blank"><strong>here</strong></a>.</p><p>And you can get a free copy of my latest book “<strong>Ten Reasons to Add Trend Following to Your Portfolio</strong>” <a href="https://www.toptradersunplugged.com/10-reasons-shownotes" rel="noopener noreferrer" target="_blank"><strong>here</strong></a>.</p><p>Learn more about the Trend Barometer <a href="https://www.toptradersunplugged.com/resources/market-trends/" rel="noopener noreferrer" target="_blank"><strong>here</strong></a>.</p><p>Send your questions to&nbsp;<a href="mailto:info@toptradersunplugged.com%22%20%5Ct%20%22_blank" rel="noopener noreferrer" target="_blank">info@toptradersunplugged.com</a></p><p>And please <strong>share this episode</strong> with a like-minded friend and <strong>leave an honest Rating &amp; Review</strong> on&nbsp;<a href="https://www.toptradersunplugged.com/reviewttu" rel="noopener noreferrer" target="_blank"><strong>iTunes</strong></a>&nbsp;or <a href="https://open.spotify.com/show/2OnOvLbIV3AttbFLxuoaBW" rel="noopener noreferrer" target="_blank"><strong>Spotify</strong></a> so more people can discover the podcast.</p><p>Follow Nick on <a href="https://twitter.com/nbaltas" rel="noopener noreferrer" target="_blank">Twitter</a>.</p><p>Follow Moritz on <a href="https://www.linkedin.com/in/mseibert/?originalSubdomain=en" rel="noopener noreferrer" target="_blank">LinkedIn.</a> </p><p><strong>Episode TimeStamps:</strong></p><p><strong>00:23</strong> - Moritz opens the show and introduces Nick</p><p><strong>01:16</strong> - Nick’s quick life update and setting the tone</p><p><strong>02:45</strong> - Market resilience vs. fragility in 2025</p><p><strong>04:18</strong> - Performance rundown: CTAs, trend, equities, bonds</p><p><strong>06:10</strong> - October reversals: metals and livestock giveback</p><p><strong>07:32</strong> - What’s working: equities, gold, copper; sugar shorts</p><p><strong>08:58</strong> - Trend speed, April V-shape, and dispersion</p><p><strong>10:40</strong> - Position exits, re-entries, and neutral zones</p><p><strong>11:55</strong> - How QIS differs and why it’s opaque from the outside</p><p><strong>14:40</strong> - How big is QIS? Asset class split and caveats</p><p><strong>18:05</strong> - Who uses QIS: from asset owners to hedge funds</p><p><strong>21:30</strong> - What QIS really provides: rules, access, and efficiency</p><p><strong>28:05</strong> - The four pillars of product design (research, clients, tech, markets)</p><p><strong>30:20</strong> - Why thousands of indices exist (customization, wrappers)</p><p><strong>33:22</strong> - Delta-1 vs. options on indices: when each makes sense</p><p><strong>36:58</strong> - Vol targeting trade-offs for optionality and recovery</p><p><strong>38:55</strong> - Built for scale, but with capacity discipline</p><p><strong>42:00</strong> - Innovating without data-mining traps</p><p><strong>47:12</strong> - Crowding: congestion, vol carry, and trend mechanics</p><p><strong>56:35</strong> - Wrap-up and what to expect next week</p><p>Copyright © 2025 – CMC AG – All Rights Reserved</p><p>----</p><p><strong>PLUS:</strong> Whenever you're ready... here are 3 ways I can help you in your investment Journey:</p><p><strong>1. eBooks that cover key topics that you need to know about </strong></p><p>In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. <a href="https://www.toptradersunplugged.com/resources/ebooks/" rel="noopener noreferrer" target="_blank"><strong>Click Here</strong></a></p><p><strong>2. Daily Trend Barometer and Market Score </strong></p><p>One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! <a href="https://www.toptradersunplugged.com/resources/market-trends/" rel="noopener noreferrer" target="_blank"><strong>Click Here</strong></a></p><p><strong>3. Other Resources that can help you</strong></p><p>And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. <a href="https://www.toptradersunplugged.com/resources/" rel="noopener noreferrer" target="_blank"><strong>Click Here</strong></a></p><p><a href="https://www.toptradersunplugged.com/legal/privacy-policy/" rel="noopener noreferrer" target="_blank">Privacy Policy</a></p><p><a href="https://www.toptradersunplugged.com/disclaimer/" rel="noopener noreferrer" target="_blank">Disclaimer</a></p>