The Derivative

In this engaging discussion, Brad Giaimo, a seasoned trading-floor expert and co-founder of Q3 Asset Management, and Bruce Greig, a quantitative portfolio manager with a solid math background, delve into tactical investing. They share insights from their unique paths, including Brad's time with Paul Tudor Jones and Bruce's shift to systematic strategies. Learn about Q3's innovative risk management techniques, their transparent model development, and how they challenge traditional buy-and-hold approaches. Plus, get a glimpse of their upcoming tactical ETFs!

In a captivating discussion, Kevin Davitt, Nasdaq’s Head of Index Option Sales, and Nicholas Smith, an Index Options Specialist, delve into the exciting evolution of the NASDAQ 100. They explore why this index is garnering attention from younger investors and its unique volatility traits. The pair dissect the rise of zero-day options and the influence of AI on market dynamics. With insights into tail risk hedging and global demand for NDX products, this conversation serves as a dynamic guide to the future of investing and option strategies.

Bob Elliott, co-founder and CEO of Unlimited Funds, shares his remarkable journey from working in botany to becoming a key player at Bridgewater Associates. He dives into how he systematizes hedge fund strategies into accessible ETFs, critiquing the traditional 2&20 fee structure. Bob discusses his macro views on the economy and the Fed’s dynamics, emphasizing the balance between systematic and discretionary insights. He also explores unique topics like live cattle markets and risk diversification, making complex investment strategies relatable to everyday investors.

Jeff dives into a challenging trend following drawdown, revealing how different this one feels after 25 years in the market. He honors Waldo Wiens, a key figure in managed futures, while reflecting on lessons from Hurricane Katrina. The discussion shifts to AI's role in finance and education, questioning its potential downsides. He champions strategic leverage for diversification, reshaping misconceptions about risk. To top it off, Jeff shares personal rants on everything from wind turbines to highway manners, leaving listeners entertained and engaged.

Mike Stendler, Managing Director of O'Brien Investment Group, shares insights on blending traditional trend-following strategies with innovative machine learning techniques. They explore the O'Brien family's century-long legacy in trading, the shift from stock markets to futures, and the evolution of investment strategies. Stendler discusses a new short-term machine learning program, enhancing portfolio diversity, and navigating risks, particularly in the cryptocurrency market. Their conversation highlights adaptability in an increasingly complex financial landscape.

In this engaging discussion, Jeff Apel, a principal at Wharton Capital Management with extensive experience in cattle trading, dives into the current surging beef prices. He explains how drought conditions, herd sizes, and consumer demand are reshaping the market landscape. Apel also reflects on his trading floor memories and shares insights on navigating modern cattle contracts. The conversation covers the beef supply chain's complexities and the rising popularity of plant-based alternatives, showcasing the beef market's resilience amid changing consumer preferences.

Bernie Yu, Co-founder and CIO of Patronus Capital, brings a wealth of experience in options trading and market making to the discussion. He reveals how a small team can thrive in the competitive world of S&P 500 volatility. Bernie explains the art of liquidity using a grocery store analogy, making complex concepts accessible. Listeners will learn about his innovative market-making strategies, the dynamics of risk management, and the implications of recent market trends and legal changes. His journey from Australia to Chicago adds a personal touch to his insights.

Brian Adams, a Partner at Mack International specializing in family office and talent search, shares his journey from real estate entrepreneur to advisor for ultra-high-net-worth families. He uncovers the complexities of family offices, including navigating generational wealth transfer and talent acquisition. Brian discusses the strategic decision-making and personalized services that drive successful family office operations. He also emphasizes the evolving challenges posed by technology and communication within affluent families, providing valuable insights for those interested in this opaque industry.

Kevin Jamali, Senior Vice President at Farther and alternative investment strategist, shares his unique journey from trading at the Chicago Board of Trade to wealth management. He discusses how technology and personalized advice are revolutionizing financial planning, moving beyond traditional investment strategies. The conversation delves into the value of alternative investments like private equity and managed futures for portfolio protection. Jamali also draws parallels between Brazilian Jiu-Jitsu and investment strategy, highlighting adaptability and risk management.

Jon Caplis, CEO of Pivotal Path, shares his expertise in the hedge fund industry, having tracked over 3,000 funds worth $3 trillion. He discusses surprising performance trends in strategies like equities and global macro, while addressing the challenges of data collection in hedge fund research. Caplis reveals how sophisticated investors are navigating this evolving landscape, touching on the significance of transparency in data and the complexities of multi-strategy funds. His insights on talent, capacity, and investor interest offer a captivating look into hedge fund dynamics.