How to Build a Short Volatility Strategy?

In this episode I speak with Dennis Davitt, CEO of Millbank Dartmoor Portsmouth.

Dennis began his career in the option pits of New York and Chicago and eventually worked his way to managing the equity derivatives desk for Credit Suisse. These experiences taught Dennis two important lessons. First, respect markets over models. Secondly, always ask: “what’s the motivation behind this transaction?” And for each of these lessons, Dennis offers a number of stories to entertain us.

In 2013, Dennis left the sell side to join the buy side, and shares with us some important lessons learned about both productizing knowledge and client communication.

In the back half of the conversation we discuss Dennis’s new firm, the opportunity he currently sees in short volatility, ideas for creating a hedged equity strategy when hedging is expensive, and why investors might want to take a page from Moneyball.

I hope you enjoy my conversation with Dennis Davitt.