Making Sense

Matthieu Boisot, Head of Cross-Asset at J.P. Morgan's QIS, joins Eloise Goulder to discuss pivotal trends in trading. They delve into the explosive growth of short-dated options and levered ETFs, emphasizing the need for retail investors to track gamma for intraday moves. Boisot shares insights on the evolution of volatility alpha strategies and the intricate dynamics that shape today’s markets. The conversation highlights the challenges of simplifying trading strategies while exploring the future landscape for investors.

Martin Lueck, Co-founder and Research Director at Aspect Capital, shares insights from his decades-long experience in systematic investing. He discusses the enduring power of trend analysis across asset classes and critiques the efficient market hypothesis. Lueck emphasizes the importance of balancing systematic strategies with human insight and adapting to market complexities. He also explores the future role of machine learning and AI in investment processes, highlighting the need for caution and collaboration in this evolving landscape.

Paul Zummo, Chief Investment Officer of J.P. Morgan Alternative Asset Management, shares insights from three decades in hedge fund investing. He reflects on how the industry has evolved from limited data to a focus on quantitative strategies and emerging managers. Zummo discusses the significance of risk management and due diligence in selecting hedge fund managers. He highlights the importance of cultural assessments and networking, along with the complexities of maintaining a balanced portfolio that includes early-stage managers.

Chris Ventresca, Global Chairman of Investment Banking and M&A at JPMorgan, shares his insights alongside Charlie Post and Jessica McIntosh. They discuss the evolving responsibilities of corporate directors and the impact of climate uncertainty on decision-making. The conversation highlights the importance of collaboration and open dialogue in boardrooms. They also explore the value of networking for board placements and the significance of proactive management during uncertain times. Gain practical tips for enhancing governance and driving shareholder value.

The U.S. economy showed surprising strength in June, adding 147,000 jobs and lowering the unemployment rate to 4.1%. However, much of this increase came from government employment, raising questions about private sector growth. Insightful discussions revolve around the Federal Reserve's potential rate cuts and how current economic data influences these decisions. The podcast also touches on the challenges posed by trade policy and its effects on consumer spending, making for a comprehensive look at the evolving financial landscape.

Fabio Bassi, Head of Cross-Asset Strategy at J.P. Morgan, and Jay Barry, Head of Global Rates Strategy, delve into the current economic landscape. They discuss the enduring uncertainties shaping the market, including trade tensions and fiscal policies. The impact of rising U.S. tariffs on global growth and inflation is analyzed, alongside the resilience of corporate markets. Additionally, they explore the outlook for emerging markets amid geopolitical risks and the stabilization of oil prices, highlighting investor opportunities and challenges for the second half of 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.

Kari Vatanen, head of Asset Allocation and Alternatives at Elo, one of Finland's largest pension funds, discusses the evolving landscape of investing. He highlights the significance of hedge funds and illiquid assets in portfolio diversification amidst market uncertainties. Vatanen shares insights on Elo's asset allocation strategy, emphasizing a balanced 60-40 portfolio approach. The conversation also touches on the challenges of valuing illiquid assets and the need for transparency and collaboration in asset management, especially during inflationary periods.

Patrick Hargreaves, the CEO of AKO Capital and PM of the AKO Capital Global Fund, dives into the firm's quality investment philosophy and the importance of identifying 'patterns of quality' in companies. He explains how specialized teams in market research, forensic accounting, and data science work alongside analysts to enhance investment decisions. The discussion also highlights the role of machine learning in investment processes while emphasizing the enduring significance of human judgment. Hargreaves shares insights on long-term strategies and learning from past mistakes.

Chris Andrew, the Head of Market Structure and Regulatory Change in EMEA, brings his expertise in European capital markets to the discussion. He and Eloise Goulder explore the impressive 38% surge in European trading volumes, driven by geopolitical shifts and sector dynamics. They highlight the potential for European equities to outperform the US market. The conversation also dives into the urgent need for reforms to integrate capital markets across Europe and the challenges of creating a savings and investments union to enhance security and funding.