The Derivative

The Derivative

By RCM Alternatives
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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Tackling Trading Technologies and (lower case t) technology with Guy Scott of TT

The Derivative

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Trend Following Turtle Tails (and Tales) with Jerry Parker
Legend time. We’re hearing straight from the mouth of well-known Turtle Trader – Jerry Parker – on this episode to talk all things trend following. Becoming a leading voice in the alternatives investment and trend following space – Jerry has turned his Turtle Trader experience into a trend following career (perhaps at the expense of some other things in life, as he mentions…) Join us for this talk with Jerry about new remote CTAs, the hidden gem of Tampa, the famous Wall Street Journal ad, what’s enough risk to make it work, pet birds, trading components instead of an index of components, fed limits on trend, volatility targeting, portfolio construction, trend following impatience, the lack of power in diversification, and trend following as an inflationary hedge. Chapters: 00:00-01:38 = Intro 01:46-12:12 = Background / Turtle Trading 12:18-23:34 = Diversification 23:41-40:16 = Risks of Trend Following 40:23-1:15:15 = Insight into Chesapeake / Trading Systems 1:15:22-1:22:15 = Favorites Follow along with Jerry on Twitter and LinkedIn and check out the Chesapeake website to learn more. And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, 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
1:22:15
August 6, 2020
Do Hedge Funds Suck? With Max Nissman, Olivier d’Assier, and Scott Treloar
We sat down with three different legs of the hedge fund stool who (feeling the currently hedge fund investment landscape is a bit broker) are partnering on bringing some disruption to the hedge fund space with a new platform/fund of funds approach to analyze and allocate to different strategies.  This three-way conversation touches on the perception that hedge funds suck in light of their stock market underperformance, and what investors can do about it. We’ve got Managing Member at Linnis, Max Nissman, Noviscient’s CIO, Scott Treloar, and Managing Director at AXIOMA, Olivier d’Assier. Are hedge funds outdated? Do they still provide the value that their known for? Are we being too hard and we shouldn’t “fix what isn’t broken”? Can AI help identify the poor performers. Take a listen. Follow along with our guests: Max Nissman on LinkedIn and the Linnis website. Scott Treloar on Twitter, LinkedIn, and the Noviscient website. Olivier d’Assier on LinkedIn Chapters: 00:00-01:50 = Intro 01:51-14:41 = Origins 14:48-29:21 = Hedge Fund Space 29:28-52:56 = Secret Sauce & A.I. 53:04-58:02 = Favorites And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, 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
58:02
July 30, 2020
Seeking (VIX) Certainty with Certeza's Brett Nelson
In a #ThrowbackThursday of sorts, we’re bringing you an episode recorded pre-pandemic where we hit the road and traveled to Utah to interview the brain behind Certeza Asset Management, Founder and CIO – Brett Nelson. Brett is another guest deserving of the moniker VIXpert – having been trading the VIX since it first entered the game, literally trading VIX back when there were a few dozen contracts a day changing hands. We’ll be covering everything VIX (along with non-VIX topics) including: skiing in Salt Lake, pure volatility futures, being a math nerd, the left and right tail, 19 y/o quant financing, the Spanish pronunciation of Certeza, trading the VIX since inception, term structure, gaming the VIX, proprietary algos, and the best resorts in Utah. Follow along with Brett on LinkedIn and check out the Certeza website to learn more. And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, or LinkedIn, and Facebook, and sign-up for our blog digest. Chapters: 00:00 - 1:37 = Intro 01:38 - 17:20 = Background 17:26 - 30:18 = Genesis of Certeza 30:26 - 44:42 = The Strategy 44:49 - 58:18 = Term Structure 58:25 - 1:08:36 = Research/Strategy 1:08:44 - 1:15:40 = Favorites 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
1:15:40
July 23, 2020
BLNDX[ing] Trend Following and Global Equity with Standpoint’s Eric Crittenden
How do you get investors to stick with an asset allocation that’s good for them in the long term, but maybe doesn’t taste so good over shorter timer periods?  Today’s guest has designed a new mutual fund to attempt just that, giving investors the whole meal instead of letting them fumble around with the ingredients. Eric Crittenden, Co-Founder and CIO of Standpoint Funds joins us today to talk about Standpoint’s new $BLNDX fund. We’ll be getting into the weeds on this unique fund, as well as talking about Witchita State basketball, a zero sum game, 2,554 days of surfing, building Standpoint from the ground up, a “mystery asset class,” the new ETF dilemma, structural risk premia, losing money on purpose, open interest, a fundamental death of trend following, averaging correlations, moving in a mutual fund vs private funds, the antithesis of mutual funds, never playing golf, and Star Wars character Salacious B. Crumb.  and Follow along with Eric on LinkedIn and check out the Standpoint Funds website. And last but not least, don't forget to subscribe to The Derivative, follow us on Twitter, LinkedIn, 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
1:29:12
July 16, 2020
Why Charts and What Data with Sean Brown of YCharts
In today’s episode, we’re passing by all the players and calling in the head coach – the head coach of Ycharts that is. Sean Brown – CEO of Ycharts joins us to talk about how this FinTech SAAS focused company is helping investors and advisors make the complex easy, and the easy look good! Listen to the entire podcast to learn more about: Notre Dame vs Stanford, fundamental charts, a home chef’s best grilled cheese, Ycharts easy consumer interface, human support for a technical product, taking over Bloomberg, the Dave Portnoy Portfolio benchmark, adding COVID data streams, getting clean data (not from China), and what’s next for Ycharts. *Special for The Derivatives listeners – contact Ycharts& mention The Derivative, and you’ll get 15% *Valid only until 8/31/2020 Follow along with Sean on LinkedIn & Twitter, and follow Ycharts on LinkedIn, Twitter, Facebook, and the Ycharts website. And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, 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
1:04:44
July 9, 2020
5 Asia/China Focused Hedge Funds, 1 Podcast!
We recently wrapped up our virtual conference: “Capitalizing on China’s Growth: Opening the Door for Investors and Managers” where we had some great one-on-one interviews with hedge fund managers operating in Asia and live in mainland China markets, including futures. We pulled the best nuggets from each individual manager and mashed them into the ultimate pod on different strategy nuances across AI models, fixed income trading, stock picking A Shares, systematic trading of China futures markets, and more. Hear from the pros with boots on the ground in Hong Kong, Shanghai, and the rest of Asia – as they unpack tips and tricks for these unique markets. Podcast Chapters: 2:37: Stephan Zhou – Partner, Shanghai Mingshi Investment Management 18:21: Desmond How – Head of Fixed Income, GaoTeng 48:15: Michelle Leung – Chief Executive Officer, Xingtai 1:11:02:  Alison Zhao – Head of Business Development, AP Capital Management 1:29:07: Brent Belote – CEO & Portfolio Manager, Cayler Capital & if the mashup wasn’t enough, you can listen to the whole interview with each manager here:   Mingshi Investment Mangement  Gaoteng   Xingtai   AP Capital Mangement   JinZhiShang Strategy 21 (Cayler Capital) If you’re an accredited investor and you’re interested in having a one-on-one or group session Q&A with one of the managers below, register for OPIM Connect: Cap Intro Event. Register here. And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, 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
1:40:15
July 2, 2020
$TVIX gets Terminated – What^%$#
Similar to how we quickly grabbed some experts to discuss Crude Oil going negative, we grabbed some VIX experts as soon as the news hit this week that Credit Suisse was pulling the plug on one of the biggest VIX tracking exchange traded products. What will this do to VIX futures volume, liquidity, and the curve. What does this mean for traders and firms using these VIX products to tweak their exposure. Our guests today are two of our favorite VIX twitter follows Jim Carroll and Patrick Hennessy. In this episode, we’re talking about the differences between ETPs, ETFs, and ETNs, what Credit Suisse was probably thinking (Hint: RISK), how VIX futures will react, and who are the players that might fill this void. Follow along with: Jim Carroll on Twitter Pat Hennessy on Twitter Don’t forget to subscribe to The Derivative, and follow us on Twitter, 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
58:13
June 25, 2020
Noodling on Ensembles, Trend, & Convexity with Newfound’s Corey Hoffstein
Our guest today is the Co-founder & CEO of Newfound Research, host of the popular podcast Flirting with Models, and FinTwit “influencer” – Corey Hoffstein. In this episode, we’re talking with Corey about the impact of “data”, the juvenile meaning behind Flirting with Models, 1000s of flavors of trend, hitting the gym, the founding of Newfound, suicides in Ithaca, sticking to your strategy through investor unrest, alts vs equities firm, the value of managed futures, implementing an ensemble approach, the mismatch between expected and market convexity, is trend actually dead,  applying AI and machine learning – in alts & the world, and Corey’s favorite Boston restaurants. Follow along with Corey on LinkedIn& Twitter. Check out Newfound Research’s website & blog, and listen to Corey on his podcast, Flirting with Models. And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, 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
1:30:11
June 18, 2020
Allocating to Alts with RPMs Alexander Mende
In this episode, we’re flipping the script of our usual hedge fund manager and drilling down on the allocation side. Alexander Mende is a Senior Investment Analyst and Head of Investment Research at RPM Risk and Portfolio Management. We’re covering a lot of ground with Alexander including herd immunity in Stokholm, an allocator’s due diligence, billion dollar AUMs, picking managers with higher risk adjusted returns vs higher absolute returns, being a lead singer in a punk rock band, trend following from an allocator’s POV, fund rebalancing, and AI and machine learning in an allocator’s world. Follow along with Alexander Mende on LinkedIn, and on RPM’s website and LinkedIn. And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, 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
1:02:10
June 11, 2020
Navigating Market Volatility with CBOE’s Kevin Davitt, Wayne Himelsein of Logica Capital Advisers, Jason Buck of Mutiny Fund, and Bastian Bolesta of Deep Field Capital.
In this episode, we’re joined by a powerhouse group of volatility experts consisting of Kevin Davitt, Wayne Himelsein, Jason Buck, and Bastian Bolesta – moderated by our very own Jeff Malec discussing Navigating Market Volatility. Providing more than just witty banter, you’ll be listening to us talk about how crazy volatility was during March/April, why the VIX is more than just for tail risk, is it too late for long volatility protection, why straddles & strangles, what everyone gets wrong about options, and the volatility landscape looking ahead. Follow along with our guests: · Kevin Davitt on Twitter and LinkedIn · Bastian Bolesta on LinkedIn and the Deep Field Capital website · Jason Buck on Mutiny Fund Twitter and the Mutiny Fund website · Wayne Himelsein on Twitter, LinkedIn, and the Logica Captial Advisers website. And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, 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
1:17:28
June 4, 2020
Black Swans, Gray Rhinos, and Tigers..Oh My with Michele Wucker
The financial world seems to have a fascination with zoomorphism – the attribution of animal names, emotions, or intentions to non- animal occurrences like market shocks. Black Swans are the famous one, but there’s also been White Moose and Gray Rhino added to the lexicon. This episode we sit down with the creator of the Gray Rhino risk metaphor, Michele Wucker, author of Gray Rhino. In today’s episode we’re talking about what a gray rhino is (and why it’s spelled with an ‘A’), assigning probabilities to risk, what constitutes a gray rhino event, why we’re so bad at preparing for a known risk before it happens, studying actual rhinos in Africa, was/is Coronavirus a gray rhino event, a Chinese obsession with the book, cultural reactions to these events and tips for those aspiring to write a book of their own. Follow along with Michele Wucker on LinkedIn, Twitter, and her website and purchase the Gray Rhino here. And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, 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
1:14:18
May 28, 2020
Tagging a Value to Pro Sports Teams with Bob Reif and Josh Moscot of TAG
70 days without sports – seems unbelievable, right? The COVID-19 pandemic has affected us all in more ways than one, and while no sports for 2+ months is at the top of the “first world problems” list, it’s a void left unfulfilled for many people. So we were excited to take a new twist on the Alternative Investment road in today’s episode and talk sports; particularly professional sports team/eSports investing and team valuations. So to help us dive deep on this, we’ve got CEO, Bob Reif, and COO, Josh Moscot of The Audible Group (TAG), to talk about purchasing part of a sports team, LA surfing, Jerryworld, if the pandemic is good/bad for sports, Arnold Palmer as the GOAT, how in the hell eSports works, Wayne Gretzky trivia, what league comes back first, what happens to salary caps, and building a Quant factor model to value a pro franchise. And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, 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 Notes: · Follow along with Bob Reif and Josh Moscot on LinkedIn. · Check out The Audible Group on Instagram, LinkedIn, and their website. · Mentioned in pod: RCM-X podcast
1:15:36
May 21, 2020
Uncovering the Known Unknowns of the Pandemic with Chief Economist Blu Putnam, ReSolve's Rodrigo Gordillo, and Teza's Dan Deering
In today’s episode, we have a little different structure and three unique guests to bring a fresh twist on The Derivative podcast. Blu Putnam of the CME Group, Rodrigo Gordillo of ReSolve Asset Management, and Dan Deering of Teza Technologies join us to discuss the economic & strategy impacts of the COVID-19 pandemic. Listening today you’ll hear some of the craziest economic stats since the Great Depression, how markets and physics share phase shifts, oil going negative, rallying gold now vs 2007/08, ski shops selling bicycles, AI in the investment process, asset allocation & pricing, quant vs human advantages, and strategy pivots in the world of COIVD-19. Follow along with our guests: Blu Putnam on LinkedIn & Twitter. Dan Deering on LinkedIn and the Teza Technologies website. Rodrigo Gordillo on LinkedIn & Twitter and the ReSolve Asset Management website, along with some docs mentioned in the pod: ReSolve Pandemic Portfolio, Adaptive Asset Allocation Global Risk Parity with Macro Factors.pdf, The Pandemic Portfolio Podcast, & 12 Days of Wisdom Podcast.  And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, 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
1:14:06
May 14, 2020
Tackling Trading Technologies and (lower case t) technology with Guy Scott of TT
Futures traders take clicking a price to generate an order on their PCs for granted these days, much less the instant delivery of every tick, order book data, and trade fills. How’s it all work?  How did it all used to work? In this episode we talk with Guy Scott of Trading Technologies about the early days of screen trading to the evolution of modern electronic trading, to what it takes to power the trading of hedge funds, trade desks, big banks, and the little guys, We’re covering professional volleyball, the early days of screen trading, trading volumes, the original order book view on trading screens, the evolution of electronic exchanges, Scottish rugby, optimal screen layouts, managing human error, the English countryside, international expansion, surveillance technology (the good kind!), and the future of Trading Technologies (the company) and trading technologies (the tech). Follow along with Guy Scott on LinkedIn, follow Trading Technologies on LinkedIn, Facebook and Twitter, and check out their website for more info. Show note highlights: Karch Kiraly & Marble Racing And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, 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
1:12:50
May 7, 2020
Texas Style Trend Following with Salem Abraham
This episode’s guest, Salem Abraham, is a bit of a legend in the trend following/managed futures space, with his 30+ years of knowledge and experience making for some of the best stories in the industry (and one of our most entertaining guests to date). In today’s episode we learn more about tiny Canadian, Texas; how you have to noodles and red sauce if in a contest to make the best spaghetti, the turtle traders, the tourist boat capsizing in front of the nude beach, talking how low oil can go, being buddies with Boone Pickens, honeybees, sending the first ever computer-generated orders electronically to the CME, trend following (of course), apple salads not equaling fruit salads, bonds at zero, and pecan & apple orchards. Abraham Trading Company is a research-driven investment management company managed by Salem Abraham that now runs the Fortress Fund for endowments and institutional investors. Since 1988, Abraham Trading Company has managed alternative asset portfolios on behalf of families, individuals, foundations, endowments, and institutions. Check out Abraham Trading’s website, and follow along with Salem himself on LinkedIn. And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, 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
1:19:28
April 30, 2020
Valuing VIX and Volatility with Joe Tigay
VIX and volatility guru (who also sidelines as CBOE & CNBC contributor and an RIA and CFO) Joe Tigay is on our pod to share some nuggets of VIX and vol expertise with our listeners. In addition to vix & vol, we’re also talking about Michigan sports teams, the early days in the pit, Equity Armor’s four strateiges, SPX vs S&P, the risk behind options, Pequod’s pizza, trading volatility through EAVOL, negative return expectations, gamma scalping, panic selling, Moneyball, and poker to trading parallels. About Equity Armor Investments: Equity Armor Investments is a wealth management firm offering advisory services to both retail and institutional investors. Their goal is to provide superior risk-adjusted returns through effective and efficient risk management. EAI seeks to provide investors and institutions with low volatility consistent advisory solutions. Our products and strategies seek to reduce many of the convexity issues plaguing investors. Follow along with Joe Tigay LinkedIn and Twitter, and check out the four strategies highlighted in this podcast by visiting the Equity Armor website. And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, 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
1:14:07
April 25, 2020
Crude Oil goes Negative… What^%$#
Yesterday was a historic day for crude……and the trend continues today. With crude oil going negative for the first time ever. That’s right – May Crude Oil futures went to -$37/barrel. Essentially saying you would get paid $37 per barrel to own  this Oil. This has left seasoned, new, and non-futures traders scratching their heads wondering how something like this could even happen. We turned to two of the top energy guys we know – Emil van Essen of Emil van Essen, LLC and Brent Belote of Cayler Capital, LLC to get some expert opinions on how and why something like this has happened, and what the future looks like after this. In today’s episode we’re covering oil storage, whether anyone’s actually out there getting paid to own oil, very large tankers, whether brokers can even process negative prices, Russia vs Saudi Arabia vs US Shale, demand for oil, and will we ever get back to $100/barrel? Follow Brent Belote on LinkedIn and Twitter and check out Cayler Capital’s website & fund tear sheet; and follow Emil van Essen on Twitter and LinkedIn And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, 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
47:59
April 21, 2020
Exchanging Intellectual Assets with $TAIL, $SYLD $GVAL ETF-icionado Meb Faber
In this episode we chat with an ETF creator, financial book author, and host of the popular Meb Faber Show podcast. We're talking with Meb Faber about Colorado sports teams, trend following, skiing vs surfing, farmland investments, interesting pod guests, how most asset managers are out of business already but don’t know it, how Meb invests his own money, IN-N-OUT orders, and naming ETFs as the last thread of creativity in investing. Meb Faber is a co-founder and the Chief Investment Officer of Cambria Investment Management, where he creates the investment process behind their ETFs and separate accounts. Meb is the host of a popular podcast and has authored numerous white papers and actual hold in your hand books. He is a frequent speaker and writer on investment strategies and has been featured in Barron’s, The New York Times, and The New Yorker. Mr. Faber graduated from the University of Virginia with a double major in Engineering Science and Biology. Follow Meb on Twitter and LinkedIn, check out his website & the Cambria Investments website, download his free books, and take a listen to his podcast. And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, 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
1:29:23
April 17, 2020
The principles of VIX trading with Alex Orus of Principalium
In this episode we're diving deep into VIX futures and using that instrument to gain convexity in a portfolio, we chat with Swiss hedge fund manager Alex Orus of Principalium who have a three pronged approach to trading volatility as an asset class. Our topics include  Swiss country music, personifying your trading models, the volatility of volatility, Roger Federer, negative interest rates hurting Europe’s youth, Jeff’s pop-up helmet invention, the good old days (2010) in the VIX, and why convexity matters. Take a Listen! Principalium Capital AG’s Volatility Strategy operates across three facets of the volatility trade:  1. collecting the roll yield premium present in the VIX futures curve, 2. Positioning the portfolio for spikes in volatility during a market crash, and 3. Capturing the mean reverting properties of volatility. The strategy systematically adjusts exposure to these different concepts dynamically, by combining 25 different individual models on different time frames applied to each of the three facets. Follow Alex on Linkedin Follow Principalium Capital AG on Linkedinand check out their website And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, 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
1:15:28
April 9, 2020
Trading Chinese Futures Markets with Abingdon Global
Chickity China the Chinese chicken futures. Between strict regulations, gated access, mainland-based employees, and more seemingly difficult roadblocks, the Chinese Futures Market can feel untouchable. But with abundant growth possibilities and highly volatile (= good for trading) markets, some firms are leading the charge in accessing this growing marketplace. In this episode, we talk with Fred Schutzman and Stephen Klein about their Chinese-launched Abingdon fund and dive deeper into liquid Chinese futures markets, NY sports alliances,  moving strategies into Chinese markets, testing systematic models, the best pizza places in THE city, Fiberboard futures, black metals, tricking dogs into volunteering, and the process of taking strategies live in a new marketplace. On top of their individual U.S. ventures, the team on the Abingdon fund has over 50 years of combined experience in managing portfolios, and for the China-specific ventures, they focus on a classical systematic multi model strategy with directional trades in futures grounded by technical analysis. Notes:  Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications Stephen Klein LinkedIn Donate to Village Care here Donate to Gilda's Club here And last but not least, don't forget to subscribe to The Derivative, and follow us on Facebook, Twitter, or LinkedIn, 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
55:59
April 2, 2020
Trading Commodity Volatility – A Woman’s Perspective
Take a listen to our latest podcast to hear why we think trading in and out of different volatility regimes in the commodity markets “like a woman” is a big PLUS. We talk with Kimberly Rios, portfolio manager of the Catalyst Hedged Commodity Strategy Fund about: the CFHIX mutual fund, meeting Muhammad Ali, being a woman in the male dominated asset management world, where commodity option liquidity is, OJ and Nicole Simpson, why buy and hold commodity investing sucks, missing senior prom, seasonality in Corn futures, why female hedge fund managers outperform males, working the Sydney Olympics, and navigating high and low volatility periods with vol as an asset class. The Catalyst Hedged Commodity Strategy Fund seeks to provide positive returns in most market conditions with low correlation to the global equity and commodity markets by investing in dynamic option strategies using physical commodity futures contracts on Crude Oil, Gold, and Corn. Trades focus on volatility, seasonality, technical analysis and price; rather than attempting to forecast where the markets will be in the future. Episode Links: Catalyst Hedged Commodity Strategy Fund page Catalyst Funds Twitter Catalyst Funds LinkedIn Kimberly Rios LinkedIn and email RCM blog post “Asset Class Scoreboard: The Decade” And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, 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
1:01:47
March 26, 2020
Capturing the Global Sell-Off with Bastian Bolesta of Deep Field Capital
This timely episode gets into just what kind of investment strategy you would have needed to have to capture the huge down move in markets recently and huge spike up in volatility. We talk with Bastian Bolesta, founder and CEO of Swiss-based hedge fund Deep Field Capital, about: designing and implementing effective tail risk strategies, how most of the sell-off has happened in overnight hours, paddle boarding on the Hudson River, whether the “boy” is controlling the machine or the “machine” controlling the boy, Red Cross founder Henry Dunant, the theoretical upper bound of the VIX, squashing the sombrero, and of course…the Coronavirus/COVID-19 pandemic. Deep Field Capital AG is a purely systematic shop based in Zug, Switzerland trading highly reactive intraday and short-term systematic programs in global futures and equity markets with a positive skew, convex profile in a top-tier institutional setup. They also run a Volatility Arbitrage strategy composed of four different “pillars”: Calendar spreads in the VIX VIX/SP spreads Intraday capture in equity indices Intraday capture in VIX futures Note: If you want to skip straight to strategy/market talk, fast forward to 34:37. Links: Deep Field Materials Deep Field Capital: Quantitative Intraday and Short-term Trading Solutions Deep Field LinkedIn Contact Deep Field Books The Invention of Hugo Cabret Book The Behavioral Investor by Daniel Crosby       And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, 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
1:37:38
March 19, 2020
Crypto & Bitcoin Lending with Tom Anderson of Drawbridge Lending
A little different than our usual “hedge fund strategy manager” we chat with Tom Anderson – journalist turned trader turned broker turned entrepreneur – who is now President and Chairman of the Board at DrawBridge Lending; a Chicago fintech company focused on lending in the digital asset space. We’ll be talking about loans against crypto and Bitcoin – covering both sides of the (proverbial) coin with lender and investor needs – risk-based financing, “tape recorder Tom”, why having more kids increases your opportunities to live in Australia, crypto term definitions (cold storage, hot walls, custodians,…), and how to access the Bitcoin and crypto space. DrawBridge Lending is a digital asset management company coordinating USD loans on a blockchain, and protecting borrower assets and lender capital using a third-party, qualified and insured custodians, and advanced risk management strategies [video explainer here]. Touted the “next evolution for lending”, DrawBridge is a entrepreneur in the crypto/Bitcoin lending space with low risk and easy access, designed to avoid the hassle of margin calls, hidden fees, and high rates. Episode Links DrawBridge Lending Website DrawBridge Twitter DrawBridge Facebook DrawBridge LinkedIn Tom Anderson LinkedIn And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, 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
1:06:31
March 12, 2020
Asset Allocation, AI, and the Alpha Process with Resolve Asset Management
We sit down with the three Canadian founders of Resolve Asset Management to talk zebras walking amongst horses, mid-frequency trading (move over HFT), how the Chicago Bears don’t add Alpha, extracting structural market flaws, low carb diets, regulatory and structural arbitrage,  Peru and the Shining Path terrorist group, orthogonal carry, fasting,  winning the content game, and economic reasoning to appease the complex thinker. Resolve Asset Management is a systematic asset manager out of Toronto focusing on unique and advanced ways of implementing global asset allocation. They operate managed account, private funds, and a mutual fund (RDMIX); using varying automated investment and allocation strategies; including flavors and ensembles of trend following, carry, seasonality, skewnewss, behavioral arbitrage (think trading around a big fund needing to rebalance at end of quarter), and AI/machine learning informed “alpha buckets”. Episode Links:  Rodrigo Gordillo Twitter & LinkedIn Adam Butler Twitter & LinkedIn Mike Philbrick Twitter & LinkedIn Gestalt University Podcast Resolve Website Rational/Resolve Adaptive Asset Allocation Fund  And last but not least, don't forget to subscribe to The Derivative, and follow us on Facebook, Twitter, or LinkedIn, 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
55:43
March 4, 2020
Staging a Market Mutiny with Jason Buck and Taylor Pearson of Black Pearl
In this episode exploring the many facets of long volatility and tail risk exposure, we pick the brains of the founders of the Mutiny investment program, which invests in half a dozen VIX and volatility trading programs in a multi-manager, multi-strategy approach. Our topics include why the whole world is short vol, If squirrels and deer are the natural buyers of forest fire insurance, why Jason hates sports, debit card investing, the interesting idea of an entrepreneurial put option, and what in the world a Brazilian SuperBowl champion is. Enjoy! Black Pearl’s Mutiny investment program is an ensemble approach focused on providing investors tail risk protection across three different buckets of volatility exposure: Volatility Arbitrage, Straddles/Strangles, and Short Term Down Capture.  With each bucket containing its own ensemble of multiple investment managers focused on providing convex returns during a market sell off, with an eye towards limiting the bleed. Jason Buck: Email; Taylor Pearson LinkedIn, Twitter, Book: The End of Jobs, & his blog. Mutiny Website & Podcast. And last but not least, don't forget to subscribe to The Derivative, and follow us on Facebook, Twitter, or LinkedIn, 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
1:39:37
February 27, 2020
Decoding Execution Algos with Joe Signorelli & David Don
This episode dives deep into the math and people behind what most people take for granted or don’t even know they need to improve their trading – execution algorithms. We cover Orlando as a favorite vacation spot (What&^%),  what/who is a quant, working with students at Notre Dame, UCLA, and Illinois, how even a slow trader can benefit from fast execution, algos named Prowlers, Snipers, Leggers, and….R2-D2 as a vacuum cleaner. RCM-X is a trading technology and risk management services company, and as you might guess from  the name, a subsidiary of RCM Alternatives. We sit down and chat with their top two people - Joe Signorelli, RCM-X Managing partner, and David Don, COO/Head of Algorithmic Trading – and dive into the background of RCM-X, what execution algorithms really are, how they're implemented in modern day trading firms, and why they're important for more firms than you might think. We also discuss the RCM-X University program, which is a cool way this innovative group is bridging the gap between academia and professional trading firms to help build a solid base of future talent of the industry through top college programs. How to follow along with RCM-X: RCM-X website, Twitter, & LinkedIn Joe Signorelli LinkedIn & Contact David Don LinkedIn & Contact And last but not least, don't forget to subscribe to The Derivative, and follow us on Facebook, Twitter, or LinkedIn, and sign-up for our blog digest. Disclaimer: Due to industry regulations hosts and participants will not discuss any company funds on this podcast. All opinions expressed by podcast participants are solely their own opinions and do not reflect the opinions of RCM Alternatives or any of their affiliates. This podcast is for informational purposes only and should not be relied upon for investment decisions. Visitors should not act upon the content or information found here without first seeking appropriate advice from an accountant, financial planner, lawyer or other professional. For more information, visit rcmalternatives.com.
1:04:42
February 4, 2020
The Life of a Discretionary Trader with Breakout Funds’ Aaron Larkin & Matt Laviolette
This fun conversation talks with two guys who have chosen a life of monitoring the markets on a near real-time basis, covering serious strategy components, as well as whether a Bulls game or trading Asian markets overnight is more fun for a trader in their 20s, trading Trump tweets, what ‘you can’t lose money’ actually means, Indiana Hoosier basketball, going from global war to blooming peace in 45 minutes,  and being a dinosaur Breakout Funds is one of the more unique strategies that we collaborate with as they focus on being a bit more discretionary, more short-term, and approach the market with more convexity than your average manager - sometimes leading to interrupted vacation time. Aaron Larkin, CEO & Co-Founder, and Matt Laviolette, Founder, CIO, & Principal of Breakout Funds join us on this episode to discuss their backgrounds and how their unique approach works. Follow along with the Breakout Fund team through LinkedIn with Aaron Larkin & Matt Laviolette and the Breakout Fund website.  And last but not least, don't forget to subscribe to The Derivative, and follow us on Facebook, Twitter, or LinkedIn, 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
48:07
February 4, 2020
Wayne Himelsein: The Human Behind the Hedge Fund
Wayne Himelsein is a hedge fund manager, President, and Chief Investment Officer at Logica Capital Advisers. Beyond that Wayne is a 25-year veteran in the trading space, and we're talking about hedge funds, his quantitative investment strategies, and even his own non-profit, Informed-by-Nature.  On this episode we're covering the oddity of a volatility trader living somewhere where there is no volatility (in the weather), reading the world’s longest book, hoping this is the big one when your car is in midair, J-Curve the rapper, and overpaying by 1000% for out of the money options. Make sure to follow Wayne on Twitter and LinkedIn, and check out the Logica Capital Advisers and Informed-By-Nature.  Don't forget to subscribe to The Derivative, and follow us on Facebook, Twitter, or LinkedIn, and sign-up for our blog digest.  Disclaimer: Due to industry regulations hosts and participants will not discuss any company funds on this podcast. All opinions expressed by podcast participants are solely their own opinions and do not reflect the opinions of RCM Alternatives or any of their affiliates. This podcast is for informational purposes only and should not be relied upon for investment decisions. Visitors should not act upon the content or information found here without first seeking appropriate advice from an accountant, financial planner, lawyer or other professional. For more information, visit rcmalternatives.com.
54:05
January 27, 2020