91 episodes

Welcome to The Derivative by RCM Alternatives, where we dive into what makes alternative investments go, analyze the strategies of unique hedge fund managers, and chat with interesting guests from across the investment world. Hosted by RCM Managing Partner, Jeff Malec, join us to take a ride through the world of alternative investments.

The Derivative RCM Alternatives

    • Business

Welcome to The Derivative by RCM Alternatives, where we dive into what makes alternative investments go, analyze the strategies of unique hedge fund managers, and chat with interesting guests from across the investment world. Hosted by RCM Managing Partner, Jeff Malec, join us to take a ride through the world of alternative investments.

    The Bitcoin ETF parade and Grayscale Trust, with Jason Urban of Galaxy Digital

    The Bitcoin ETF parade and Grayscale Trust, with Jason Urban of Galaxy Digital

    Join us in this, our last episode of the year, where we’re talking Crypto and Bitcoin ETFs with Jason Urban, Global Co-Head of Trading at Galaxy Digital – which is perhaps better known as the folks behind the world’s largest Bitcoin Fund, the Grayscale Bitcoin Trust and its ownership of 650k+ bitcoin!  Today we step into a bit of Jason’s past when he founded and ran the equity index derivative business at a Chicago prop firm DRW and his time at Goldman Sachs where he ran its equity vol business. We talk about all the moving parts of pure flow trading, skew/cheap, skew/rich, the right side of the trade, when to get out;  and his first exposure to Crypto Currencies. Jason talks Grayscale, billionaire founder Michael Novogratz & all things Galaxy Digital, from touching all aspects of the crypto universe, from mining to trading to venture funding; being on the Institutional only side of the market, whether or not DeFi is a Disrupter or tool, the FOMO aspect, staking, and maintaining the ledger, the mining ecosystem and the decentralized way of doing things while trying to solve problems in this Crypto space. If all that doesn’t get you going about Crypto currencies, we still find room to discuss just what the Options space looks like in crypto (the implied vol is how much??), Bilateral trading, and of course - the Grayscale Trust going from premium to discount – and the potential for all the new Bitcoin ETFs coming out. Enjoy!

    Chapters:

    00:00-02:19 =Intro

    02:20-19:04 = Goldman, DRW, and Trading House Money

    19:05-31:21 = Galaxy Digital, Are you a Disrupter?, and What’s Novo Like?

    31:22-44:18 =The Day-to-Day in the Global Crypto Space, the FOMO Aspect, Staking, & Solving the Problem

    44:19-51:20 = Options & Bilateral Trading

    51:21-01:04:47 =Create or Redeem: The Grayscale Trust and New Bitcoin ETFs

    01:04:48-01:09:03 =Favorites



    Follow along with Galaxy Digital on Twitter @GalaxyDigitalHQ and visit their website for more information at https://www.galaxydigital.io/

    Don't forget to subscribe to The Derivative, and follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2, or LinkedIn , and Facebook, and sign-up for our blog digest.

    And visit our sponsor, the CME Group at www.cmegroup.com to learn more about futures and options.

    Disclaimer: This podcast is provided for informational purposes only and should not be relied upon as legal, business, or tax advice. All opinions expressed by podcast participants are solely their own opinions and do not necessarily reflect the opinions of RCM Alternatives, their affiliates, or companies featured. Due to industry regulations, participants on this podcast are instructed not to make specific trade recommendations, nor reference past or potential profits. And listeners are reminded that managed futures, commodity trading, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. For more information, visit www.rcmalternatives.com/disclaimer

    • 1 hr 9 min
    A Multi PM (Global) Macro Masterclass with Markian Zyga

    A Multi PM (Global) Macro Masterclass with Markian Zyga

    In this episode, we shed some light on one of the largest groups you’ve maybe never heard of, whose new “mission” is to seek out incredible trading talent and blend them together in a multi-PM Global Macro approach. We get into just how this all works, and more, in our chat with Markian Zyga, Portfolio Manager of Mission Crest, which is a subsidiary of Lighthouse Investment Partners who oversee about 14 billion in assets across their own hedge funds, solutions and services groups.

    We begin by discussing Markian’s background and start in the investment world, his college soccer days, what allocators miss, and how to avoid falling for the narrative of a strategy. Digging in deeper we talk how, why, and when to allocate to Emerging managers, the fund of funds versus Multi PM models, the Mission Crest strategy, macro investors, this history of Global Macro, the current Global Macro environment, blending discretionary and systematic together, trading tactically on the shorter side of trade duration, capturing big macro trends, seeking out capacity constrained strategies and searching for Alpha in the markets they’re trading. But we don’t stop there... Markian explains Mission Crests’ Multi-PM model, how the process of finding top trading talent includes both trust and identifying an edge. Buckle up for an interesting discussion on their global macro approach to investing for absolute returns.

    Chapters:

    00:00-03:38= Intro

    03:39-16:16= Striker to Strategist, and avoiding the Narratives

    16:17-25:40= Emerging Managers & the Fund of Funds vs Multi PM Model

    25:41-46:44= The Global Macro, all Assets, all Regions, Sustainable Edge Mission

    46:45-01:00:46= Finding Attractive Talent, Gaining Trust, & Maintaining the Right Mental Space

    01:00:47-01:12:59= Fixing the Great Trader/Terrible Business Person Conundrum

    01:13:00-01:20:21= Accessing A.I., Model Degradation & Machine Learning

    01:20:22-01:24:55= Favorites

    For more information please visit lighthousepartners.com 

    Don't forget to subscribe to The Derivative, and follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2, or LinkedIn , and Facebook, and sign-up for our blog digest.

    And visit our sponsor, the CME Group at www.cmegroup.com to learn more about futures and options.

    Disclaimer: This podcast is provided for informational purposes only and should not be relied upon as legal, business, or tax advice. All opinions expressed by podcast participants are solely their own opinions and do not necessarily reflect the opinions of RCM Alternatives, their affiliates, or companies featured. Due to industry regulations, participants on this podcast are instructed not to make specific trade recommendations, nor reference past or potential profits. And listeners are reminded that managed futures, commodity trading, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. For more information, visit www.rcmalternatives.com/disclaimer

    • 1 hr 24 min
    Attaining an Allocator's Edge with Phil Huber

    Attaining an Allocator's Edge with Phil Huber

    This week is a cage match of a pod, going point/counterpoint on every Alt from private equity to fine art to digital assets with Phil Huber and the knowledge he’s about to drop in his upcoming new book ‘The Allocators Edge: A modern guide to alternative investments and the future of diversification’. Phil is the Chief Investment Officer at Savant Wealth Management. As a Chicago native, we talk with Phil about his start in investments with his interests in the family business from an RIA wealth management background and decided to sink his teeth in. We dive into his book talking about everything from how the actual writing of it went – to what’s being said in it – from the current issues with the 60/40 portfolio, his blog bps and pieces, why sometimes the juice isn’t worth the squeeze, the thin line between traditional and alternative portfolios, his periodic table of investments, reviewing a huge list of Alternative Investments, including private equity, real estate, fine art, digital assets, style premia, real assets, trend following, and more, the state of Indiana sports, 80’s-90’s pro wrestling,  and Chicago pizza. Join us on this interesting Alt-tastic ride as we dig into what really is an Alternative investment by cracking open that “Other” bucket on the client statements.

    Chapters:

    00:00-02:37 = Intro

    02:38-13:30 = Family Ties & the Modern RIA playbook

    13:31-24:40 = Blogs, Muses, and the Allocator’s Edge

    24:41-32:51 = The Problems with the 60/40 portfolio in today’s world

    32:52-46:15 = The Periodic Table of Investments

    46:16-01:08:14 = Walking through a dozen Alternative Investments ALT by ALT

    01:08:15-01:20:42 = Digital Assets, and How a Portfolio of Alts might Look

    01:20:43-01:26:05 = Favorites

    From the Episode:

    Get his book on Amazon, Barnes & Noble

    Read Phil's blog bps and pieces: https://bpsandpieces.com/ & Follow Phil on Twitter @bpsandpieces

    Don't forget to subscribe to The Derivative, and follow us on Twitter at @rcmAltsand our host Jeff at @AttainCap2,  or LinkedIn , and Facebook, and sign-up for our blog digest.

    And visit our sponsor, the CME Group at www.cmegroup.com to learn more about futures and options.

    Disclaimer: This podcast is provided for informational purposes only and should not be relied upon as legal, business, or tax advice. All opinions expressed by podcast participants are solely their own opinions and do not necessarily reflect the opinions of RCM Alternatives, their affiliates, or companies featured. Due to industry regulations, participants on this podcast are instructed not to make specific trade recommendations, nor reference past or potential profits. And listeners are reminded that managed futures, commodity trading, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. For more information, visit www.rcmalternatives.com/disclaimer

    • 1 hr 26 min
    Convex (CONVX) to the Core with Certeza’s Brett Nelson

    Convex (CONVX) to the Core with Certeza’s Brett Nelson

    In this episode, we sit down again with one of the OGs of VIX futures trading & options, Brett Nelson, CEO of Certeza Asset Management, and discuss their new mutual fund — Convex Core and how it relates to their Macro Vega hedge fund strategy. Join us to hear how the mutual fund aims to participate when the market is up, exploit opportunities when things get bumpy, and then protect heavily when the market is down. Brett explains why Convex Core isn't just an overlay strategy and how utilizing changes in Vega & Gamma can help protect you in a rough market. We talk about the Geometric Loss Problem, Certeza's three regimes of Volatility, their equity component, dialing through options, looking for the mathematical structure in the market, the rebalancing premium, and the importance of educating Advisors/Investors on volatility as an asset class. Finally, we ask Brett's opinions on some well-known relative value or Volatility arbitrage trades, asking when they work and when they don’t. And rounding things out is a discussion on the two new VIX ETF products coming out, and Brett’s thoughts on Delta Hedging Market Makers, just how critical "flow" is,  and what the next disruption event could look like.



    Chapters:

    00:00-02:46= Intro

    02:47-06:04= Covid = A Missed VIXportunity

    06:05-025:02= A Flawed Mentality & The 3 Regimes of Volatility

    25:03-38:09= Masquerading As an Equity Strat & the Rebalancing Premium

    38:10-48:21 = What Works? What Doesn’t in Vol Arb trading

    48:21-54:39= VIX ETFs: Good, Bad, or Ugly?

    54:40-01:11:55= Delta Hedging Market Makers: A Game within Games



    Check out our previous episode with Brett here: Seeking (VIX) Certainty with Certeza's Brett Nelson

    Follow along with Brett on Twitter @CertezaAM 

    Don't forget to subscribe to The Derivative, and follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2,  or LinkedIn , and Facebook, and sign-up for our blog digest.

    And visit our sponsor, the CME Group at www.cmegroup.com to learn more about futures and options.

    Disclaimer: This podcast is provided for informational purposes only and should not be relied upon as legal, business, or tax advice. All opinions expressed by podcast participants are solely their own opinions and do not necessarily reflect the opinions of RCM Alternatives, their affiliates, or companies featured. Due to industry regulations, participants on this podcast are instructed not to make specific trade recommendations, nor reference past or potential profits. And listeners are reminded that managed futures, commodity trading, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. For more information, visit www.rcmalternatives.com/disclaimer

    • 1 hr 11 min
    Weigh More than You Wanted to Know About Meat, with AgriTrend’s Simon Quilty

    Weigh More than You Wanted to Know About Meat, with AgriTrend’s Simon Quilty

    In this week's pod, we're doing something new and digging into the derivative market's Ag roots in our first "Way more than you need to Know" series, starting with the Global Meat Markets. Joining us today discussing all things Meat in the world is Simon Quilty, from Melbourne, Australia, and also RCM's very own Jeff Eizenberg, who handles all things Ag, including hosting the Hedged Edge podcast where they talk grown in the ground commodities once a month. Today we get an overview of the Global meat market: Beef, Poultry, and Pork, the main players and the main concerns, including labor and shipping shortages being a critical problem in securing food security around the globe. Simon talks about how he goes about hedging the various contracts providing risk management for the current disruption for in-demand meat products. We're talking Cutouts, CME vs. Wholesale prices and how to manage that risk, using swaps and removing basis risk to help manage price risk, and how the big players in the meat industry navigate it all. Bacon? Who said bacon. We briefly discuss that cut of pork belly that most of the US and Canada love so much & the future of alternative food, Beyond Meat, and their questionable mark on the industry since COVID. Also, We Want the Beef! Why beef will continue to dominate the meat market and why inflation is fueling it right along.



    Chapters:

    00:00-02:44 = Intro

    02:45-07:18 = From Dancing Lessons in Melbourne To Escaping Tiananmen Square

    07:19-23:04 = How Big is the Global Meat Market? Who has it? Who needs it?

    23:05-36:59 = Big Player’s Concerns & the Tightening of the Global Beef Supply

    37:00-57:57 = The Hedgers Toolbox: Futures, Cutouts, Swaps & Offsetting Risk

    57:58-01:15:12 = Bacon Lovers, Beyond Meat as a Bust, and a Little Lamb

    01:15:13-01:18:34 = Favorites



    Follow along with Simon on Twitter @SimonQuilty and for more information visit the website at globalagritrends.com 

    Don't forget to subscribe to The Derivative, and follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2,  or LinkedIn , and Facebook, and sign-up for our blog digest.

    And visit our sponsor, the CME Group at www.cmegroup.com to learn more about futures and options.

    Disclaimer: This podcast is provided for informational purposes only and should not be relied upon as legal, business, or tax advice. All opinions expressed by podcast participants are solely their own opinions and do not necessarily reflect the opinions of RCM Alternatives, their affiliates, or companies featured. Due to industry regulations, participants on this podcast are instructed not to make specific trade recommendations, nor reference past or potential profits. And listeners are reminded that managed futures, commodity trading, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. For more information, visit www.rcmalternatives.com/disclaimer

    • 1 hr 18 min
    Reimagining Risk and Reinsurance (& Cat Bonds) with Chris McKeown of Vantage Risk

    Reimagining Risk and Reinsurance (& Cat Bonds) with Chris McKeown of Vantage Risk

    We’re looking into the far reaches of the search for yield in this episode, diving into investors’ interest in so-called Cat Bonds, or catastrophe bonds, and the world of reinsurance and ILS (insurance-linked securities). Yes, even the biggest risk-takers need backing – and we’re talking Reinsurance with Chris McKeown, Chief Executive of Reinsurance, ILS, and Innovation at Vantage Group Holdings. Take a trip with us and daydream about Bermuda as we define reinsurance: the secondary market & their clientele, capital protection, the risk transfer process and what efforts go into sorting through claims, what disaster gaps are, and how reinsurance is helping aid areas in vital need of protection. We’re discussing Cat(Catastrophe) bonds, ILS, Pop & Drop Hurricanes, Climatology, tight ecosystems, secret handshakes, and why Bermuda is the central hub for reinsurance. Chris explains the importance of adjusting models to deploying capital, why cat bond investors rely on these models, and what structural issues the business of reinsurance is facing in an upside market, trying to bring investors in.

    Chapters:

    00:00-02:39 = Intro

    02:40-10:43 = Taking on Risk in the Hurricane Belt

    10:44-32:41 = Off-loading Riskvia Reinsurance, Capital Deployment & Investor portfolio protection

    32:42-38:21 = Cat Bonds & Structural Issues in an Upside Down Market

    38:22-52:35 = Climate Change, Adjusting Models & Defining Capital in a Tight Ecosystem

    52:36-58:05 = Favorites

    For more information about Vantage Group Holdings please visit vantagerisk.com

    Don't forget to subscribe to The Derivative, and follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2,  or LinkedIn , and Facebook, and sign-up for our blog digest.

    And visit our sponsor, the CME Group at www.cmegroup.com to learn more about futures and options.

    Disclaimer: This podcast is provided for informational purposes only and should not be relied upon as legal, business, or tax advice. All opinions expressed by podcast participants are solely their own opinions and do not necessarily reflect the opinions of RCM Alternatives, their affiliates, or companies featured. Due to industry regulations, participants on this podcast are instructed not to make specific trade recommendations, nor reference past or potential profits. And listeners are reminded that managed futures, commodity trading, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. For more information, visit www.rcmalternatives.com/disclaimer

    • 58 min

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