Ep 58 Raise Your Average with Nancy Davis, Quadratic Capital Management LLC

Our deep dive conversation into hedging interest rate volatility and inflation, with Nancy Davis, Founder and Managing Director of Greenwich, Connecticut-based Quadratic Capital Management LLC. We discuss markets, interest rates and interest rate volatility, and the risk of inflation making a comeback, from the perspective of IVOL being a strategic portfolio diversifier as well as being opportunistically priced. Davis discusses the asymmetry of being long 'convexity,' a way of investing in interest rate volatility where the potential for return is disproportionately greater than the investment because the risk is mis-priced.

We discuss how the Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL:NYSE), her firm's ETF, is a solution for investors looking for investment options that have little or no correlation(do not behave the same way at the same time) to equities and bonds, and in the context of today's investment climate, represents an asymmetrical opportunity/addition that may be opportunistic and complementary to today's traditional portfolios.

The price of interest rate volatility also happens to be at an all time low, lower than even before the GFC. By the time we're done talking about what seems an otherwise complicated strategy, you'll be able to understand what it is. The rates market is the largest segment of financial markets and until now was for all intents and purposes, inaccessible by individual investors.

Nancy Davis - https://www.linkedin.com/in/nancyquadratic

IVOL ETF - https://www.ivoletf.com

Quadratic Capital Management LLC - https://quadraticllc.com

IVOL White Paper - https://kfafunds.com/reports/ivol-white-paper

IVOL Presentation - https://www.ivoletf.com/wp-content/uploads/2021/01/IVOL-Presentation.pdf

IVOL Fact Sheet - https://www.ivoletf.com/wp-content/uploads/2021/01/2020_12_31_ivol_factsheet.pdf

*****

Mike Philbrick, CEO, Resolve Asset Management SEZC - https://www.linkedin.com/in/michaelphilbrick

Rodrigo Gordillo, President, Resolve Asset Management SEZC - https://www.linkedin.com/in/rodrigogordillo

Resolve Asset Management - https://investresolve.com

Resolve AM's Featured Research - https://investresolve.com/research

Resolve AM's Blog - https://investresolve.com/blog

*****

Pierre Daillie, AdvisorAnalyst.com - https://www.linkedin.com/in/pierre-daillie-advisoranalyst

AdvisorAnalyst.com - https://advisoranalyst.com

*****

Welcome to Raise Your Average, our deep dive journey into learning from the people and process behind the world of investing. Through conversations with leaders in the investments game, we peel back the layers of the onion on how these holders of the keys to the kingdom allocate their time, their energy, and their dollars.

We are all students and we are all teachers. Jump in with us and raise your average, as we raise ours.