The Derivative

In this engaging conversation, Stephane Bernhard, CEO/CIO of CAM Multi-Strat Asset Management, shares insights from his 30+ years in commodity trading. He discusses the evolution of commodity trading and the importance of risk management, revealing why traditional VAR methods fall short. Stephane highlights his firm’s unique approach to merging physical and financial strategies in trading while tracing historical parallels in the market. Personal anecdotes from his experiences add depth to the discussion, making this a must-listen for trading enthusiasts!

Join Dave Morehead, CIO of Baylor University's $2.2 billion endowment, as he shares his insights on institutional investing. He discusses innovative portfolio strategies, successfully deploying volatility tactics during the 2020 crash. Morehead emphasizes a cautious approach to equity exposure while focusing on secular growth in healthcare and technology. He also dives into the dynamics of bond markets, trade policies, and how institutional funds navigate market volatility while supporting education. A captivating blend of finance and personal stories awaits!

Vineer Bhansali, Founder and CIO at LongTail Alpha, is an expert in tail risk hedging and volatility. In this discussion, he tackles the recent market turbulence, highlighting the implications of liquidity challenges and the shift towards automated trading. He discusses strategies like 0DTE options and emphasizes the potential decline of American exceptionalism impacting the U.S. dollar and gold's resurgence. Bhansali also dives into market distress indicators and the Fed's role in stabilizing rates amidst ongoing economic uncertainty.

Join Harold de Boer, a trailblazing systematic trader and founder of Transtrend, as he shares his journey from a Dutch dairy farm to revolutionizing trend following. Discover how trend following mirrors herd behavior in markets and the vital role of diversification. With insights on navigating complex market dynamics and resilience during downturns, Harold emphasizes the importance of adaptability. He even lightens the mood with a cinematic take on trends, contrasting traders to cows—all while dissecting the art and science of successful trading.

Corey Hoffstein, known for his insightful research on return stacking, joins financial wizards Adam Butler and Rodrigo Gordillo, along with Mike Philbrick, to explore innovative investment strategies. They discuss enhancing portfolios without disrupting core holdings through layering alternative assets. The group examines sophisticated strategies like managed futures and merger arbitrage, highlighting their potential for diversification. Plus, they engage in a playful round of 'Choose Your Fighter,' revealing their unique strengths and camaraderie.

Rick Silva, co-founder of Metaurus Advisors, specializes in innovative trading strategies for equity risk premiums through dividend futures. He discusses applying fixed-income securitization techniques to equity markets, offering unique insights into pricing equity cash flows. The conversation includes harvesting risk premiums from the dividend curve and the introduction of new futures contracts aimed at optimizing returns. Additionally, Rick addresses regional challenges in the dividend futures market and even dives into some light-hearted political banter!

Scott Phillips, CIO of Lavaca Capital and former auditor at KPMG, shares his journey from energy derivatives to options trading. He discusses the evolution and complexities of options strategies, emphasizing the need for better education in the field. Scott highlights the recent market volatility and its implications on trading strategies, as well as the importance of tailored solutions for clients. They also touch on misconceptions within options trading, the impact of growing ETFs, and the lessons learned from past market events.

Join us for an insightful exploration of the fascinating world of commodity futures with Kurt Nelson, co founder and Managing Partner of SummerHaven Index Management. Kurt shares his unique perspective, honed over decades of experience, on the rich history and evolution of commodity markets - from the Dojima Rice Exchange in 16th century Japan to the modern-day cocoa futures trading. Discover how SummerHaven's research-driven approach, including the firm's dynamic commodity index, aims to uncover the elusive commodity risk premium and provide investors with diversified exposure to this complex asset class. Kurt offers insights on the challenges and opportunities presented by factors like inflation, supply chain disruptions, and geopolitical tensions, and explains why commodities deserve a place in a well-balanced investment portfolio. Whether you're a seasoned commodity trader or just curious about this unique asset class, this episode is packed with engaging anecdotes, market analysis, a glimpse into the future of the commodity landscape, and trading history you might have missed out on! Don't miss this captivating conversation with one of the industry's leading experts in Commodities – SEND IT!Chapters:00:00-01:22=Intro01:23-07:15= Tracing the Roots of Commodity Futures07:16-20:51 = Adopting business models & creating indexes20:52-35:29 = The Evolution in commodity risk premium’s and SummerHavens’ research-driven approach35:30-46:17 = Lessons in resilience & optimization with an impacting factor: Inflation46:18-01:00:01 = Diversifying is essential: Vacationing in Cocoa01:00:02-01:06:38= Positioning for the next decade’s opportunities01:06:39-01:13:45 = Culinary Corner: The Best Indian dish in StamfordFrom the episode:The Commodity Futures Risk Premium – 1871-2018 whitepaperFollow along with Kurt onLinkedIn and check out SummerHaven's website:summerhavenindex.comDon't forget to subscribe to⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠The Derivative⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, follow us on Twitter at⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠@rcmAlts⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and our host Jeff at⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠@AttainCap2⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, or⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠LinkedIn⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ , and⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Facebook⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, and⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠sign-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, visit⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠www.rcmalternatives.com/disclaimer⁠

Mohammad Rasouli, a renowned Stanford researcher and CEO of AIx2, shares insights on how AI is revolutionizing alternative investments. He discusses the transformative impact of AI on deal sourcing and portfolio management, while addressing the challenges and best practices for adoption. The conversation delves into the differences between predictive and generative AI, and the implications for finance jobs. Rasouli also touches on the quest for Artificial General Intelligence and the importance of responsible governance in this rapidly evolving landscape.

In this engaging discussion, Peter Madsen, the Chief Investment Officer of Utah’s SITFO, shares his journey from skiing in the Wasatch mountains to managing a multi-billion dollar sovereign wealth fund. He delves into SITFO's governance structure, revealing how trust lands generate revenue through leasing and royalties. Peter also explains the shift from passive to diversified investments while debunking myths about equity-heavy portfolios. His insights on risk management and asset allocation provide a fascinating look into the complex world of institutional investing.