Hedgeye Podcasts Hedgeye Investing Summit Fall 2025 | Steve Diggle, Founder & CEO, Vulpes Investment Management
Oct 30, 2025
In this enlightening discussion, Steve Diggle, Founder and CEO of Vulpes Investment Management, dives into the art of investing during volatile times. Known for his impressive long-volatility strategies during the 2007-2008 crisis, Steve explores the current market landscape, emphasizing the risks of passive flows and retail speculation. He shares insights on managing timing risks and the importance of static hedges. With a cautious outlook, he warns that future market returns may disappoint, drawing parallels to past market manias. A must-listen for keen investors!
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Long‑Volatility Win In 2008
- Steve Diggle recounted his fund's 2007–2008 run where long-volatility hedges produced huge gains amid market collapse.
- His team made over $3 billion between mid‑2007 and end‑2008 while many funds lost half their value.
Hedge Sustainably Against Time Decay
- Options and long‑vol strategies suffer time decay unless actively managed with arbitrage and trading.
- Staying solvent requires hedges that don't burn cash while waiting for market dislocations.
Allocate A Tradable Volatility Sleeve
- Keep a tradable portion of your long‑volatility inventory to harvest profits and offset time decay.
- Trade parts of the book disciplinarily so you can stay exposed without burning through theta.
