For Jordi Visser, market crisis events inevitably result in regime shifts.  The pandemic of 2020 – a shock to the economy, deterioration in asset prices and an overwhelming response from the government and Central Bank – is no exception.  In his role as Chief Investment Officer at Weiss Multi Strategy Advisers, Jordi is dispassionate in his assessment of risk and reward, relying on hard data rather than the common narratives often proffered.  In today’s set of market prices and data, Jordi sees opportunities in that beaten down factor called value, as it is associated with cyclical industries that produce goods.  As supply chains are moving onshore, price increases are occurring as a result of production bottlenecks.  And at the same time, Jordi sees changes in demand, especially from millennials, who are shifting to consume “things” like autos and housing and focusing less on experiences in a post-pandemic world.  On balance, Jordi see relative value opportunities in value versus growth and EM versus DM.

We talk as well of Jordi’s upbringing and the important impact his father has had in helping him think about odds.  Looked at through the lens of horseracing, betting on the trend is about laying significant odds to bet on the favorite. And market disruption events are inevitably tied to the shattering of a widely held consensus where too much capital was invested in the favorite.  In this context, and given his career experience, Jordi has plenty of insight to share on the derivatives markets, hedging and the price of tail risk.  Please enjoy this episode of the Alpha Exchange, my conversation with Jordi Visser.