Michael Pomada, President and CEO of Crabel Capital Management, discusses the firm's transformation since 2008, evolving from manual to systematic trading while growing assets to over $5 billion. He emphasizes the significance of adapting investment strategies and the role of technology in risk management. Pomada also shares insights on cultivating a positive workplace culture, encouraging innovation, and promoting accountability among team members. Their engaging conversation showcases the balance between fun and performance in driving success.
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Crabel's Transition Story
Michael Pomada joined Crabel Capital in 2008 when trading was mostly manual with 37 people on the trade desk.
Since then, the firm evolved from $600 million in assets to managing over $5 billion today, fully automated and systematic.
insights INSIGHT
Complexity Replaces Simplicity
Simple trading strategies worked well for 20 years but now require additional research and multiple alphas.
Thriving today means expanding beyond a single idea to capture diverse market anomalies.
insights INSIGHT
Legacy and Continuous Improvement
Original Toby Crabel alphas remain central, producing unique long-volatility return streams without constant losses.
Continuous improvement mindset avoids resting on past success and prepares for changing market conditions.
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Written by Benjamin Graham, 'The Intelligent Investor' is a seminal work on value investing that has inspired millions since its original publication in 1949. The book emphasizes the importance of distinguishing between investing and speculation, calculating the intrinsic value of companies, and maintaining a margin of safety. The revised edition includes updated commentary by Jason Zweig, who provides modern examples and insights to help readers apply Graham's principles in today's market. Warren Buffett, a disciple of Graham, has praised the book as 'the best book about investing ever written'.
A Random Walk Down Wall Street
Burton G. Malkiel
In this book, Burton G. Malkiel argues that stock market prices are essentially random and unpredictable, aligning with the efficient market hypothesis. He discusses historical financial bubbles, the futility of trying to beat the market through technical or fundamental analysis, and the importance of a diversified portfolio. The book also covers various investing techniques and theories, including modern portfolio theory, and advises investors to adopt a long-term, disciplined approach to investing.
Founded in 1987 by Toby Crabel, a former professional tennis player turned commodities trader, Crabel Capital Management has today evolved into a diversified quant manager with over $5 billion in assets. In this episode, Peter Sughrue from J.P. Morgan’s Prime Financial Services Sales team sits down with Michael Pomada, president and CEO of Crabel. They discuss the importance of adapting strategies to thrive in today’s complex market, with a focus on systematic trading, risk management and the growing role of technology.
This episode was recorded on May 6, 2025.
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