Making Sense Serving up success: Crabel Capital Management’s evolution
Jun 27, 2025
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.
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.
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.
