The Derivative RCM Alternatives
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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.
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Surviving Adversity, Building Resilience, and Evolving a Quantitative Investment Firm with Joe Kelly of Campbell
Joe Kelly, partner at Campbell & Co., joins us this week for a new episode of The Derivative. Jeff starts talking skiing, as he’s apt to do, but this time is a bit different, with Joe sharing an update on his recent recovery from a nasty ski accident that nearly left him paralyzed (or worse). We
then move right into Joe discussing his career journey from trader to founding a FinTech startup during the tech bubble, to joining the long-time managed futures standout Campbell & Company.
Joe touches on the firm's focus on collaboration and shared research culture differing from the classic ‘pod shop’ model. Kelly and Malec discuss Campbell's investment strategies, including trend following, quantitative macro, long/short equity, and short-term trading.
They also debate systematic macro strategies versus global macro versus trend following; while touching on risk management, portfolio construction, and the challenges of managing non-correlated investments. Kelly provides insights into Campbell's future plans, including enhancing short-term capabilities with AI and considering new asset classes. This episode has it all! A little alternative investment history tour, a peek inside one of the most successful Alts firms of all time, and bringing it back full circle, overcoming adversity through resilience. SEND IT!
Chapters:
00:00-01:50=Intro
01:51-13:04= Skiing gone wrong and finding resilience to
defy the odds
13:05-22:10= Early trading days: FinTech, Hedging stock
options, Rotella Capital, and industry revolution
22:11-35:57= A Campbell opportunity, firm culture &
collaboration in investment management
35:58-48:03= A 4 Bucket approach, stable vol, convexity
locked in, & transparency for portfolios
48:04-58:29= Quant Macro vs Trend – Momentum signals and relative value strategies / Replication: Impossible?
58:30-01:06:19= What’s next? Date density and Short-term opportunities - Wait, what about A.I.?
From the episode:
MMI Index Article (Blast from the past: How futures saved stocks)
Panel Event Podcast with Joe Kelly (Why Systematic, Why CTA? Why Now?)
Andrew Beer on The Derivative episode (Fund replication)
Check out our Trend Following Guide!
Follow along with Joe on LinkedIn and for more information visit Campbell's website at
https://www.campbell.com/
Don't forget to subscribe to The Derivative, follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2, or LinkedIn , and Facebook, and sign-up for our blog digest.
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 pas -
50 Charts showing the Current State of Volatility, with Jeremie Holdom and Colin Suvak of LongTail Alpha
This episode of The Derivative discusses the current state of Volatility – and how to use those measurements in diversifying investment strategies with Jeremie Holdom and Colin Suvak of LongTail Alpha, an investment firm focused on tail risk hedging. The guests share insights into their work, analyzing volatility across asset classes and constructing customized hedging solutions for institutional investors.
Jeff, Jeremie, and Colin do something a little bit different in this pod – walking through several graphics and charts to discuss notable stats and trends in implied and realized
volatility pricing in not just equities, but across various asset classes including energies, Gold, interest rates, and more. Check the episode out on YouTube if you're wanting to see their beautiful charts. They also explore topics like the influx of options selling and its implications. They dive into topics like interest rate movements, inflation effects, fixed income-equity correlation shifts, and how these influence positioning across strategies like tail hedging and trend following.
Learn about Longtail's customized approach to constructing hedging solutions around tail hedging costs and frameworks like generalized optionality and how the firm evaluates basis risk. This discussion also covers challenges measuring counterparty risk and the interplay between explicit and implicit hedging strategies. Sit back and look at how professionals interpret shifting market dynamics and construct diversified portfolios using alternative risk mitigation approaches. SEND IT!
Chapters:
00:00-02:24=Intro
02:25-08:40= Cal vs Can
cost of living & backgrounds among the tails
08:41-18:11= Generalized optionality & Risk mitigation – Long vol, the core of basis risk
18:12-24:25= Diversifying strategies, hedging Nasdaq, customized approach, & tail risk hedging
24:26-37:24= Keeping tabs on all type of Vol – why does it matter? Basis risk across all asset classes
37:25-51:32= Implied vs realized Volatility, Volatility skew & short-term vol
51:33-01:00:44= The Vol selling influx / 0DTE
01:00:45-01:15:27= The shake out & blending all pieces together
From the episode:
Taming the tails with LongTail Alpha’s Vineer Bhansali on The Derivative
LongTail Alpha Whitepaper: Option Total Return and Active Option Portfolio Management
Follow along with LongTail Alpha on Twitter with Vineer Bhansali @longtailalpha , on LinkedIn with Jeremie Holdom & Colin Suvak & also check out there website for more information: LongTailAlpha.com
Don't forget to subscribe to The Derivative, follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2, or LinkedIn , and Facebook, and sign-up for our blog digest.
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 -
Finding Alpha in Unexpected Places: Doug Greenig on Trend Following Beyond Developed Markets
In this in-depth conversation, Jeff Malec picks the brain of veteran quant Doug Greenig about pursuing trends on a truly global scale. Greenig takes listeners on his fascinating career journey, from cutting-edge fixed income modeling at Goldman Sachs to managing risk at MAN AHL's pioneering CTA firm. He explains how this
experience led him to establish Florin Court Capital and develop novel ways of accessing over 500 international markets. Greenig and Malec engage in a lively debate about capturing narrative shifts, the effects of high-speed trading, and how allocators can balance exposure to alternative trends. Listen in on unique insights into operational challenges like structuring swaps to trade illiquid assets. Greenig also discusses how Florin Court scales risk across a massive portfolio while still delivering the crisis protection allocators seek. This revealing episode pulls back the curtain on one firm's quest to follow profits wherever macro winds may blow. SEND IT!
Chapters:
00:00-01:48=Intro
01:49-04:21= Diverse economies
04:22-22:25= Economist turned PH.D, fixed income derivatives & trend potential in emerging markets
22:26-37:00= Alternative markets/Alternative trend: Exposure to CTAs, global orientation & unique opportunities
37:01-51:20= Refining models, when narratives change, signal strength & volatility targeting
51:21-01:01:34= What drives trend, removing the narrative & moving into a complex world
01:01:35-01:06:59= Florin Court...the apartment building?
From the episode:
History of Managed Futures whitepaper
Guide to Trend Following
Follow along with Doug on LinkedIn and for more information on Florin Court and their team visit florincourt.com
Don't forget to subscribe to The Derivative, follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2, or LinkedIn , and Facebook, and sign-up for our blog digest.
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 -
Optimizing the Supply Chain: Private Equity, Automation, and Economic Indicators in Logistics with Chris Jamroz
This episode is a fascinating deep dive into the complex
world of logistics. Our guest is Chris Jamroz, CEO of Roadrunner, a serial logistics entrepreneur who has indeed seen and done it all over his career.
Chris provides colorful anecdotes about his past 100+
acquisitions and turnarounds, including the challenges and lessons learned along the way. He then gives listeners an up-close look at his current ventures - Roadrunner, an LTL shipping company known for its blazing-fast delivery speeds, and Global X, a rapidly growing charter airline.
The wide-ranging discussion touches on how the pandemic disrupted global supply chains and the "nearshoring" trend of moving manufacturing closer to home. Chris also shares insightful perspectives on economic conditions, the potential and limitations of automated trucking, and the value private equity brings to facilitating turnarounds.
For those interested in alternative investments, Chris
even discusses how his family office allocates to areas like equipment leasing, real estate, and hedge funds. Overall, it's a very entertaining and educational podcast that provides a true insider's view of the logistics industry. SEND IT!
Chapters:
00:00-01:19= Intro
01:20-06:49= Extracting value across the continent
06:50-13:45= Quality freight transportation, LTL Players, allure of trucking life, 100+ acquisitions
13:46=26:00= Logistics & the global economy, freight recession post COVID spikes & the global supply
26:01-33:58= Rate pain points, the trigger effect, inflation & automated trucking – is it even possible?
33:59-45:20= Private equity = Devil or angel? Removing barriers & Deserving the right to grow
45:21-51:10= LyonIX & other ventures
Learn more about Chris: https://chrisjamroz.com/
& Roadrunner and follow along with Chris on LinkedIn @
Chris Jamroz & Roadrunner
Don't forget to subscribe to The Derivative, follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2, or LinkedIn , and Facebook, and sign-up for our blog digest.
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 -
Constructing A Systematic Oil Trader: Fueling growth at Cayler Capital
Brent Belote, founder and CIO of Cayler Capital, joins the podcast to discuss the growth of his now 5 year systematic oil trading strategy. He provides insights into analyzing supply and demand fundamentals and using quantitative models to capitalize on events in the physical oil market. Brent also shares lessons from starting his own fund and managing risk at a smaller scale. Hear about trends in the energy sector, including the impact of geopolitics, refining capacity, and green-flation (just how close are we?). Brent offers his outlook on oil prices and explores other areas of knowledge and experience in the energy sector. This one is an engaging conversation you won’t want to miss, so kick back and explore with us as we navigate through commodity markets and the experience of building a successful investment firm. SEND IT!
Chapters:
01:31-02:59= Skiing and family growth
03:00-10:32= Advances in the strategy, event driven success & Oils gone flat
10:33-27:47= Building a business, podshop thoughts & multi-strat models
27:48-36:02= Oil in ’23 – warmer temps means spiking refining numbers
36:03-43:42= Greenflation – are we ready, are we even close?
43:33-47:33= Biden administration issues and the Red Sea
From the episode:
Commodities Miami panel featuring Brent
Previous episodes of The Derivative with Brent:
Crude Oil goes Negative… WHAT^%$#
A Crude Oil Cornucopia: Covid, Crack, CSOS & Contango with Brent Belote
Follow along with Brent on Twitter @brentbelote, on LinkedIn and check out Caylercapital.com for more information!
Don't forget to subscribe to The Derivative, follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2, or LinkedIn , and Facebook, and sign-up for our blog digest.
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 -
Miami Hedge Fund week Panel 2024 Part II: Increasing Accessibility of Alternative Investments
Join us for the second half of our panel discussions during this year's Hedge Fund week in Miami as we explore increasing accessibility of alternative investments through new ETF products and strategies. We’ve got Rodrigo Gordillo taking reigns from the quantitative perspective, Jerry Parker talking trend following, Bob Elliot on replication and Jay Pestrichelli, options guru, guiding
us through hedge fund strategies, discussing their day-to-day responsibilities and tasks, highlighting differences in their approaches despite operating under the broad financial services umbrella.
We dive into challenges around educating investors on sophisticated strategies as well as recent regulatory changes that allow new product structures that are making alternative approaches more accessible to a wider range of investors. Topics
discussed include quant fund management processes, trend following across 400 markets including single stocks, and harnessing options decay in a new ETF. Challenges of communicating performance during periods of potential underperformance are being addressed such as election year impacts and whether strategies position based on outcomes, capacity constraints of highest Sharpe strategies and limitations
of full replication, along with democratizing diversification strategies through return stacking ETFs.
Sit back and gain knowledge on the expanding opportunities and accessibility in the alternatives space, with room for continued advances as innovation progresses, SEND IT!
Chapters:
00:00-01:48=Intro
01:49-14:42= Intros & the Day-to-Day work ethic
14:43-28:45= Hedge fund replication, ETFs for retail investors & financial accessibility
28:46-45:22= Democratizing diversification through ETFs, market trends & election year impact
45:23-55:53= Hedge funds generating alpha, investments strategies & ETF operations
55:54-01:08:01= Managing expectations, Innovations & the future of investing
From the episode:
Miami Hedge Fund week 2024 Part 1: Commodities
Follow along with this panel on Twitter
& LinkedIn: @rjparkerjr09 , @RodGordilloP, @BobEUnlimited, & @ZEGAFinancial
And remember to check out their company profiles on LinkedIn:
Jerry Parker
Rodrigo Gordillo
Bob Elliott
Jay Pestrichelli
Customer Reviews
Benn Eifert was great / but host needs to cut the small talk!!
I like this podcast overall and they have had some great guests. Benn Eifert is one of the most knowledgeable guys in the vol space and it was a great interview.
One piece of advice to the host => PLEASE cut the small talk at the start of your interviews! In the Benn Eifert interview the first 15mins was small talk about SF vs LA and all sorts of other stuff. People want to get to Benn’s expertise on vol / convexity and not listed to 15mins of chit chat. Please get to the point faster....
Great volatility group of speakers
The only problem was in backing up 15 seconds to hear a statement repeated, I was taken to a totally different part of the podcast.
Minutes separate one push of the 10 second forward control. Tens of minutes on the 15 seconds back control. When the end of the countdown to podcast length came, it kept playing for 24 minutes material already covered.
This never happens on this cast, and it isn’t my Apple podcast’s problem.
Great Guests + Interviewer needs improvement
The guests brought on are incredible and I am grateful overall for the podcast! My suggestion for the interviewer is to not interject so much and talk over the guests. They are intelligent and clearly articulate their points. Let them finish speaking and then follow up. Many Thanks!