Building a Commodity Trader Multi-Strat with Tom Holliday of HIP investment

Nov 20, 2025

Tom Holliday, founder and CIO of HIP Investments, shares his extensive background in commodities, from Refco to working with George Soros. He discusses the evolution of investment strategies, transitioning from fund-of-funds to multi-strategies tailored for commodities. Holliday highlights the critical role of active management in this asset class and the importance of risk management. He explains innovative incentive structures for traders and why institutions may be under-allocated to commodities. The conversation delves into current market trends and the future of the commodity landscape.

01:17:19

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ANECDOTE

Memphis To Refco To Soros

Tom Holliday started his commodities career at Refco in Memphis working near Willard Sparks and the Cotton Exchange.
He left Refco in 1996 and later worked at Soros Fund Management before co-founding Titan Advisors.

insights

INSIGHT

Futures Teach Deep Market Skills

Futures trading trains risk management because contracts embed leverage and expirations force active decisions.
Commodities mix supply-demand fundamentals with technicals, positioning, and flow, making them unique trading grounds.

question_answer

ANECDOTE

Thousands Of Manager Meetings

At Titan Advisors Holliday ran a hedge fund of funds and met thousands of managers globally over 19 years.
That exposure built pattern-recognition 'muscle memory' for identifying strong processes and manager traits.

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Commodities' Appeal and Early Trends

00:56 • 1min

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Memphis, Refco and Early Mentors

01:57 • 2min

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Why Futures Trading Trains Traders

03:35 • 9min

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Working at Soros and Launching Titan

13:03 • 4min

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Building a Fund-of-Funds Playbook

16:50 • 4min

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What Matters When Choosing Managers

21:04 • 5min

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Key Risk Factors for Strategies

25:57 • 3min

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Why Simpler Models Often Win

28:30 • 20sec

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Why Fund-of-Funds Gave Way to Multi-Strats

28:50 • 3min

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HIP's Origin: A Commodity Multi-Strategy

32:18 • 5min

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Active Commodities vs Passive Indices

37:39 • 2min

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Relative Value, Trend, and Tactical Trading

39:54 • 3min

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Portfolio Construction and Volatility Management

43:23 • 2min

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How Low-Sharp Traders Create High Portfolio Sharpe

45:13 • 1min

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Real-Time Risk Limits and Drawdown Rules

46:35 • 6min

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Incentives: Partners and Shared P&L

52:24 • 3min

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Collaboration, Information Sharing, and Avoiding Groupthink

55:17 • 4min

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Market Structure: Banks, Metals Houses, and Tail Risks

59:37 • 2min

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Recruiting Traders Without Huge Signing Bonuses

01:01:32 • 3min

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Current Roster and Target Markets

01:04:05 • 4min

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Secular Drivers: Electrification and Supply Bottlenecks

01:07:37 • 2min

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Commodities' Portfolio Role and Underallocation

01:09:48 • 4min

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Why Commodities Perform in Volatile Periods

You Show Me the Incentives and I Will Show You the Outcome

Conversations with Charlie Munger

Charlie Munger

In this episode, Jeff Malec sits down with Tom Holliday, founder and CIO of HIP Investments, for an in-depth conversation on reimagining multi-strategy investing in the commodity space. Tom shares insights from his distinguished career, from his early days at Refco to working with George Soros and launching both Titan Advisors and Hip Investments. Together, they explore the evolution from traditional fund-of-funds to collaborative, actively managed multi-strat funds, highlighting the advantages of diversification, portfolio construction, and innovative incentive structures for specialist traders. The discussion covers risk management tactics, the unique challenges and opportunities of commodity markets, and why institutional investors may be under-allocated to this asset class. Whether you're an investment professional or passionate about alternative strategies, this episode offers valuable perspectives on building resilient, high-performing portfolios in today’s changing markets. SEND IT!

Chapters:

00:00-00:56= Intro

00:57-12:56= Commodities Demand Attention: Navigating Trends, Valuation, and the Road Ahead

12:57-28:27= Foundations of a Commodities Career: From Memphis Markets to Global Futures

28:28-32:15= From Fund of Funds to Multi-Strat: Evolving Models in Investment Management

32:16-44:37=Building HIP: Innovating Multi-Strat Strategies for Commodities

44:38-59:27= Risk, Collaboration, and Incentives: Cultivating a Resilient Commodities Team

59:28-01:13:19= Seizing Commodity Opportunities: Growth, Recruitment, and Market Evolution

01:13:20-01:17:19= Commodities: The Case for Attention and Allocation

Disclaimer: This podcast is provided for informational purposes only and should not be relied upon as legal, business, or tax advice. All opinions expressed by podcast participants are solely their own opinions and do not necessarily reflect the opinions of RCM Alternatives, their affiliates, or companies featured. Due to industry regulations, participants on this podcast are instructed not to make specific trade recommendations, nor reference past or potential profits. And listeners are reminded that managed futures, commodity trading, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. For more information, visit⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠www.rcmalternatives.com/disclaimer⁠⁠⁠⁠

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