Nancy Davis spent nearly a decade on Goldman Sachs’ legendary prop desk before founding Quadratic Capital, the firm behind the popular iVol ETF. In this episode, we dive deep into her options-based approach to investing, why she believes most investors manage risk backward, and how her firm is positioning for a potential return of stagflation.

We also talk about her early days at Goldman, the psychological traps investors fall into, and why she thinks humility and coachability are underrated superpowers in finance.

If you’ve ever wanted to understand volatility, inflation protection, or how to think like a derivatives trader—this episode is for you.

Guest Bio:

Nancy Davis is the founder and managing partner of Quadratic Capital Management and the portfolio manager for the firm’s investment strategies, including the Quadratic Interest Rate Volatility and Inflation Hedge ETF (ticker: $IVOL). Before founding Quadratic in 2013, she spent nearly 10 years at Goldman Sachs, where she was a key member of the proprietary trading desk. Nancy has been recognized by Barron’s and other financial media as one of the leading experts on interest rate volatility, inflation hedging, and options-based portfolio strategies.

Stay Connected:

X / Twitter:

David Weisburd: @dweisburd

David Weisburd: https://www.linkedin.com/in/dweisburd/

Nancy Davis: https://www.linkedin.com/in/nancyquadratic/

Quadratic Capital Management: https://www.ivoletf.com/

Questions or topics you want us to discuss on How I Invest? Email us at [email protected].

(0:00) Episode Preview

(0:59) Differences in trading for internal partners vs. end clients

(1:56) Anti stop-loss philosophy and risk management

(4:24) Psychological aspects and significant trades in investing

(8:41) Discussion on market inflation and lessons from Goldman Sachs

(12:58) Importance of mentorship in finance

(19:01) Contrarian market perspectives and stagflation explained

(20:57) Closing remarks