Whipsaws, Drawdowns, and Disbelief | Eric Crittenden on the Best Diversifier No One Buys

In this episode of Excess Returns, Matt Zeigler and Jason Buck sit down with Eric Crittenden, CIO of Standpoint Funds, for a wide-ranging and candid discussion about trend following, risk transfer markets, and what it takes to build a resilient investment strategy for uncertain futures. Eric shares decades of hard-won insights on investor behavior, portfolio construction, performance pain points, and why blending passive equities with systematic macro might just be the future of asset allocation. 🔍 Topics Covered: The uncomfortable realities of trend following performance Why many investors misunderstand managed futures Eric’s view on the current drawdown and client behavior Setting expectations with empirical data and simulations The case for blending passive equities with trend following Capital formation vs. risk transfer markets explained What market participants get wrong about futures The surprising resilience of cap-weighted equity indexes The flaws in relying on bonds as diversifiers How regime shifts and correlation changes affect trend models Philosophical take on risk, regulation, and structural market design