Selling bonds short—a trade that for decades hadn’t worked consistently—has helped fuel a 37% return so far this year for the managed-futures strategy fund at AlphaSimplex Group. And the trade looks like it has further to go, according to Kathryn Kaminski, chief research strategist at the quantitative-investing firm. She joined the “What Goes Up” podcast to discuss this and other market moves that have made trend following in futures markets such a lucrative strategy this year. 
“The short-bond trade has more legs to run,” Kaminski says. “A lot of the core problems that have driven [markets] to the point where we are now have yet to be completely solved.”See omnystudio.com/listener for privacy information.