The Grant Williams Podcast

The Grant Williams Podcast Ep. 93 - Steve Diggle

Feb 21, 2025

Steve Diggle, from Vulpes Investment Management in Singapore, returns to volatility trading after a 14-year break. He discusses the current favorable conditions for downside hedging amidst high market valuations and fewer central bank interventions. Diggle highlights challenges in the biotech sector post-COVID, revealing a unique investment opportunity in undervalued companies, albeit with significant risks. He also explores the political environment under Trump, emphasizing its effects on market uncertainty and investment strategies.

12:50

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Steve Diggle

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Quick takeaways

Steve Diggle believes the current economic landscape favors downside hedging strategies due to elevated valuations and reduced central bank intervention.

The unpredictability of the Trump administration is expected to exacerbate market volatility, prompting a reassessment of investment approaches for long-term stability.

Deep dives

Return to Volatility in Investment Strategies

After a 15-year absence from the volatility market, a well-known investor sees a new opportunity in this approach. The recent shifts in economic dynamics and market behavior suggest that volatility strategies may now be viable once again. The conversation highlights how past experiences and the current landscape of unpredictable markets favor a return to these techniques, suggesting that investors might benefit from reassessing their strategies in light of changing conditions. This return stems from a perceived increase in market fluctuations, alongside a burgeoning sense of caution among businesses and investors.

Intro

2min

Shifting Political Dynamics in Trump's Return

4min

The Dynamics of an Imperial Presidency and Economic Implications

2min

Navigating Uncertainty in Investment Amid Political Changes

4min

In the latest episode of The Grant Williams Podcast, Steve Diggle of Vulpes Investment Management discusses his return to the volatility trading space after a 14-year hiatus. Steve cites several key factors that have led him to believe the risk-reward dynamic for downside hedging is now more favorable, including elevated market valuations, reduced central bank intervention capabilities, and the unpredictability of the Trump administration.

Steve also provides an update on the biotech industry, which has faced significant challenges in the post-COVID environment. He sees an unprecedented opportunity to invest in promising biotech companies whose valuations have collapsed, though caveat emptor, as the level of complexity and risk involved is significant.

If Steve is right, markets are facing heightened uncertainty that could lead to significantly increased volatility-a situation which makes the timing perfect for his ‘particular set of skills’ as downside protection strategies become first more attractive, and then imperative.

Every episode of the Grant Williams podcast, including This Week In Doom, The End Game, The Super Terrific Happy Hour, The Narrative Game, Kaos Theory and Shifts Happen, is available to Copper, Silver and Gold Tier subscribers at my website www.Grant-Williams.com.

Copper Tier subscribers get access to all podcasts, while members of the Silver Tier get both the podcasts and my monthly newsletter, Things That Make You Go Hmmm… Gold Tier subscribers have access to my new series of in-depth video conversations, About Time.

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