In this episode, we chat with Hari Krishnan of Doherty Advisors. Hari is a volatility macro-focused hedge fund manager and the author of The Second Leg Down, a look at practical approaches to profiting after a market shock.

We start the conversation with Hari by talking about the academic theory that suggests hedging is not a good long-term strategy and how his experience of the practice differs from what theory would predict.

We then get into Hari's view on ETFs and the potential systemic risk they pose to markets more broadly, and, what investors can do to manage that risk.

We look at common mistakes investors make when hedging including hedging too literally and too reasonably. Hari believes that investors typically buy options for scenarios that seem plausible when they should focus on how options will be repriced as volatility unfolds.

We then go into hedging strategies for different parts of a crisis, what Hari calls the first and second leg down. Hari has found that strategies that looked cheap before the first leg down tend to look expensive after and investors should adjust their hedging strategy as a result.

Finally we go into the role of Algos and machine learning in markets and how Hari’s views there have changed over time. You can find out more about Hari by buying his book 'The Second Leg Down: Strategies for Profiting after a Market Sell-Off'.