The Derivative

We recently wrapped up our virtual conference: “Capitalizing on China’s Growth: Opening the Door for Investors and Managers” where we had some great one-on-one interviews with hedge fund managers operating in Asia and live in mainland China markets, including futures. We pulled the best nuggets from each individual manager and mashed them into the ultimate pod on different strategy nuances across AI models, fixed income trading, stock picking A Shares, systematic trading of China futures markets, and more. Hear from the pros with boots on the ground in Hong Kong, Shanghai, and the rest of Asia – as they unpack tips and tricks for these unique markets. Podcast Chapters: 2:37: Stephan Zhou – Partner, Shanghai Mingshi Investment Management 18:21: Desmond How – Head of Fixed Income, GaoTeng 48:15: Michelle Leung – Chief Executive Officer, Xingtai 1:11:02:  Alison Zhao – Head of Business Development, AP Capital Management 1:29:07: Brent Belote – CEO & Portfolio Manager, Cayler Capital & if the mashup wasn’t enough, you can listen to the whole interview with each manager here:   Mingshi Investment Mangement  Gaoteng   Xingtai   AP Capital Mangement   JinZhiShang Strategy 21 (Cayler Capital) If you’re an accredited investor and you’re interested in having a one-on-one or group session Q&A with one of the managers below, register for OPIM Connect: Cap Intro Event. Register here. And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, or LinkedIn, and Facebook, and sign-up for our blog digest. 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, visit www.rcmalternatives.com/disclaimer

Similar to how we quickly grabbed some experts to discuss Crude Oil going negative, we grabbed some VIX experts as soon as the news hit this week that Credit Suisse was pulling the plug on one of the biggest VIX tracking exchange traded products. What will this do to VIX futures volume, liquidity, and the curve. What does this mean for traders and firms using these VIX products to tweak their exposure. Our guests today are two of our favorite VIX twitter follows Jim Carroll and Patrick Hennessy. In this episode, we’re talking about the differences between ETPs, ETFs, and ETNs, what Credit Suisse was probably thinking (Hint: RISK), how VIX futures will react, and who are the players that might fill this void. Follow along with: Jim Carroll on Twitter Pat Hennessy on Twitter Don’t forget to subscribe to The Derivative, and follow us on Twitter, or LinkedIn, and Facebook, and sign-up for our blog digest. 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, visit www.rcmalternatives.com/disclaimer

Our guest today is the Co-founder & CEO of Newfound Research, host of the popular podcast Flirting with Models, and FinTwit “influencer” – Corey Hoffstein. In this episode, we’re talking with Corey about the impact of “data”, the juvenile meaning behind Flirting with Models, 1000s of flavors of trend, hitting the gym, the founding of Newfound, suicides in Ithaca, sticking to your strategy through investor unrest, alts vs equities firm, the value of managed futures, implementing an ensemble approach, the mismatch between expected and market convexity, is trend actually dead,  applying AI and machine learning – in alts & the world, and Corey’s favorite Boston restaurants. Follow along with Corey on LinkedIn& Twitter. Check out Newfound Research’s website & blog, and listen to Corey on his podcast, Flirting with Models. And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, or LinkedIn, and Facebook, and sign-up for our blog digest. 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, visit www.rcmalternatives.com/disclaimer

In this episode, we’re flipping the script of our usual hedge fund manager and drilling down on the allocation side. Alexander Mende is a Senior Investment Analyst and Head of Investment Research at RPM Risk and Portfolio Management. We’re covering a lot of ground with Alexander including herd immunity in Stokholm, an allocator’s due diligence, billion dollar AUMs, picking managers with higher risk adjusted returns vs higher absolute returns, being a lead singer in a punk rock band, trend following from an allocator’s POV, fund rebalancing, and AI and machine learning in an allocator’s world. Follow along with Alexander Mende on LinkedIn, and on RPM’s website and LinkedIn. And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, or LinkedIn, and Facebook, and sign-up for our blog digest. 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, visit www.rcmalternatives.com/disclaimer

In this episode, we’re joined by a powerhouse group of volatility experts consisting of Kevin Davitt, Wayne Himelsein, Jason Buck, and Bastian Bolesta – moderated by our very own Jeff Malec discussing Navigating Market Volatility. Providing more than just witty banter, you’ll be listening to us talk about how crazy volatility was during March/April, why the VIX is more than just for tail risk, is it too late for long volatility protection, why straddles & strangles, what everyone gets wrong about options, and the volatility landscape looking ahead. Follow along with our guests: · Kevin Davitt on Twitter and LinkedIn · Bastian Bolesta on LinkedIn and the Deep Field Capital website · Jason Buck on Mutiny Fund Twitter and the Mutiny Fund website · Wayne Himelsein on Twitter, LinkedIn, and the Logica Captial Advisers website. And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, or LinkedIn, and Facebook, and sign-up for our blog digest. 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, visit www.rcmalternatives.com/disclaimer

The financial world seems to have a fascination with zoomorphism – the attribution of animal names, emotions, or intentions to non- animal occurrences like market shocks. Black Swans are the famous one, but there’s also been White Moose and Gray Rhino added to the lexicon. This episode we sit down with the creator of the Gray Rhino risk metaphor, Michele Wucker, author of Gray Rhino. In today’s episode we’re talking about what a gray rhino is (and why it’s spelled with an ‘A’), assigning probabilities to risk, what constitutes a gray rhino event, why we’re so bad at preparing for a known risk before it happens, studying actual rhinos in Africa, was/is Coronavirus a gray rhino event, a Chinese obsession with the book, cultural reactions to these events and tips for those aspiring to write a book of their own. Follow along with Michele Wucker on LinkedIn, Twitter, and her website and purchase the Gray Rhino here. And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, or LinkedIn, and Facebook, and sign-up for our blog digest. 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, visit www.rcmalternatives.com/disclaimer

70 days without sports – seems unbelievable, right? The COVID-19 pandemic has affected us all in more ways than one, and while no sports for 2+ months is at the top of the “first world problems” list, it’s a void left unfulfilled for many people. So we were excited to take a new twist on the Alternative Investment road in today’s episode and talk sports; particularly professional sports team/eSports investing and team valuations. So to help us dive deep on this, we’ve got CEO, Bob Reif, and COO, Josh Moscot of The Audible Group (TAG), to talk about purchasing part of a sports team, LA surfing, Jerryworld, if the pandemic is good/bad for sports, Arnold Palmer as the GOAT, how in the hell eSports works, Wayne Gretzky trivia, what league comes back first, what happens to salary caps, and building a Quant factor model to value a pro franchise. And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, or LinkedIn, and Facebook, and sign-up for our blog digest. 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, visit www.rcmalternatives.com/disclaimer Notes: · Follow along with Bob Reif and Josh Moscot on LinkedIn. · Check out The Audible Group on Instagram, LinkedIn, and their website. · Mentioned in pod: RCM-X podcast

In today’s episode, we have a little different structure and three unique guests to bring a fresh twist on The Derivative podcast. Blu Putnam of the CME Group, Rodrigo Gordillo of ReSolve Asset Management, and Dan Deering of Teza Technologies join us to discuss the economic & strategy impacts of the COVID-19 pandemic. Listening today you’ll hear some of the craziest economic stats since the Great Depression, how markets and physics share phase shifts, oil going negative, rallying gold now vs 2007/08, ski shops selling bicycles, AI in the investment process, asset allocation & pricing, quant vs human advantages, and strategy pivots in the world of COIVD-19. Follow along with our guests: Blu Putnam on LinkedIn & Twitter. Dan Deering on LinkedIn and the Teza Technologies website. Rodrigo Gordillo on LinkedIn & Twitter and the ReSolve Asset Management website, along with some docs mentioned in the pod: ReSolve Pandemic Portfolio, Adaptive Asset Allocation Global Risk Parity with Macro Factors.pdf, The Pandemic Portfolio Podcast, & 12 Days of Wisdom Podcast.  And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, or LinkedIn, and Facebook, and sign-up for our blog digest. 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, visit www.rcmalternatives.com/disclaimer

Futures traders take clicking a price to generate an order on their PCs for granted these days, much less the instant delivery of every tick, order book data, and trade fills. How’s it all work?  How did it all used to work? In this episode we talk with Guy Scott of Trading Technologies about the early days of screen trading to the evolution of modern electronic trading, to what it takes to power the trading of hedge funds, trade desks, big banks, and the little guys, We’re covering professional volleyball, the early days of screen trading, trading volumes, the original order book view on trading screens, the evolution of electronic exchanges, Scottish rugby, optimal screen layouts, managing human error, the English countryside, international expansion, surveillance technology (the good kind!), and the future of Trading Technologies (the company) and trading technologies (the tech). Follow along with Guy Scott on LinkedIn, follow Trading Technologies on LinkedIn, Facebook and Twitter, and check out their website for more info. Show note highlights: Karch Kiraly & Marble Racing And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, or LinkedIn, and Facebook, and sign-up for our blog digest. 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, visit www.rcmalternatives.com/disclaimer

This episode’s guest, Salem Abraham, is a bit of a legend in the trend following/managed futures space, with his 30+ years of knowledge and experience making for some of the best stories in the industry (and one of our most entertaining guests to date). In today’s episode we learn more about tiny Canadian, Texas; how you have to noodles and red sauce if in a contest to make the best spaghetti, the turtle traders, the tourist boat capsizing in front of the nude beach, talking how low oil can go, being buddies with Boone Pickens, honeybees, sending the first ever computer-generated orders electronically to the CME, trend following (of course), apple salads not equaling fruit salads, bonds at zero, and pecan & apple orchards. Abraham Trading Company is a research-driven investment management company managed by Salem Abraham that now runs the Fortress Fund for endowments and institutional investors. Since 1988, Abraham Trading Company has managed alternative asset portfolios on behalf of families, individuals, foundations, endowments, and institutions. Check out Abraham Trading’s website, and follow along with Salem himself on LinkedIn. And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, or LinkedIn, and Facebook, and sign-up for our blog digest. 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, visit www.rcmalternatives.com/disclaimer