Jeff loves it when he sits across from someone who, like him, has been in the niche-managed futures part of the investment world for their entire career. There’s not all that many of them, and today's guest, Michael Harris(@mikeharris410) fits the bill. Michael's unique backstory began within the Sales and Product Development group at Morgan Stanley Managed Futures in 1997, continued as European trader and eventual President of managed futures behemoth Campbell & Co., overlapped with time on the board of the Managed Funds Association, and continues today where he currently resides as Quest Partner's President.

Michael and Jeff talk about quantitatively positioning for long skew via short-term trading strategies and what set Quest apart to make him choose them to build on his impressive career. They also discuss a variety of topics like; the transition from the trading floor to the executive floor, what it was like in the good old days of managed futures, advice for funds that want to join the billion-dollar club, the macro risks in the world today, and so much more. Plus, we put Michael in the hot seat where he gives us his take on Crypto and digital assets — SEND IT!

Chapters:

02:50-07:57 = Work/Life balance

07:58-28:31 = Exploring the CTA macro space, Dean Witter's MF dept, John Henry's Model & Algorithmic progression

28:32-34:33 = Campbell & Co, Growing your Billion dollar fund

34:34-47:38 = Portfolio protection, trend following, adding positive skew & short-term strategies

47:39-01:02:12 = Reacting faster & embracing trend with short-term models

01:02:13-01:10:21 = the MFA: Providing education & understanding

01:10:22-01:21:29 = Hottest take: Crypto & digital assets

From the episode:

Sign up for the Quest indicator book

Quest's whitepapers & research

Previous Derivative episode with Quest Partner's Nigol Koulajian

RCM’s Trend Following Guide

Follow Michael on Twitter @mikeharris410 and for more information on Quest Partners visit questpartnersllc.com 

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 of 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.

How do all these smart people end up in the crypto space? Versus the hedge fund world or traditional finance, or doctor/lawyer, etc.  And how do investors separate the signal from the noise amongst all the meme stock pumps, Web 3 scams, and crypto deep dives? And is Winter coming, to borrow the Game of Thrones line…

We're sitting down with GenZ'er and FinTwit staple Caitlin Cook of the @deadcaitbounce handle, where she's diving into what it’s really like working in Crypto during the current drawdown and what drives her to pump out great content on twitter and her podcasts.

Caitlin and Jeff also discuss various topics ranging from women in finance and chicks of Fin Twit, bridging the gap in Crypto education (check out her new podcast, The DeadCaitBounce Experience), GenZer's providing professional content, and so much more! Plus, we wrap up the episode with Caitin's 3 BIG C's; Chicago, Cocktails, and Catchphrases — SEND IT!

Chapters:

00:00-01:53 = Intro

01:54-09:33 = Soccer Goals to Finance Careers via Twitter

09:34-29:28 = Chicks of Fintwit, Crypto Education, building bridges & are we now seeing a Crypto winter?

29:29-41:56 = Women in Finance & Bridging the gap in Crypto education with The DeadCaitBounce Experience

41:57-48:10 = GenZ's providing professional content while making it human on Twitter

48:11-56:47= Chicago, Cocktails & #Getoutside

56:48-01:00:39 = Hottest take

From the episode:

The DeadCaitBounce Experience: https://dcbe.podbean.com/

Follow along with Caitlin on Twitter @DeadCaitBounce and @DCBExperience

Don't forget to subscribe to The Derivative, and follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2, 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

Cover the kid’s ears… because we’re going back to our WTF format to ask what the actual Fingazi is going over in the UK with the bank of England raising rates, then buying a bunch of Gilts to save their pensions. The headlines say it’s some new-fangled LDI concept which led these pensions into trouble. But our guest this week, Zed Francis of Convexitas, says not so fast… the LDI actually is fine – and it was the reach for yield and adding some longer duration via derivatives which likely caused most of the problems.

Zed used to work at Legal & General – which sounds like a UK pub to us, but had a solutions group which created some of these LDI frameworks, so Zed’s in contact with some of the guys on the front lines during this shake-out. US pensions also use an LDI framework…is it coming for them too? What are the main differences between US and UK? Is duration the same as volatility in these cases? Are these pensions sort of short gamma? And of course, while we had him, why is some stuff (gamma) working in the Vol space when a lot of popular VIX/Vega based models aren’t.  SEND IT!

Chapters:

00:00-02:37 = Intro

02:38-17:20 = Pension Differences US vs UK

17:21-34:15 = Where does the risk show up, Duration & waterfall events

34:16-43:57 = Leverage: Keeping the drawer closed

43:58-55:42 = Where do Derivatives come in & how to plug the hole

55:43-01:02:02 = Struggles in Vol Strategies

01:02:03-01:11:09 = How Vol has changed

Follow along with Convexitas on Twitter @convexitas and for more information visit their website at convexitas.com

Don't forget to subscribe to The Derivative, and follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2, 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

How do you create a new futures contract?  You need an exchange. And you need something that changes in price, like a commodity market – or a financial index. This week we're diving deep into crafting an index with T3 Index's founder and CEO, Simon Ho. Simon is no stranger to the vol space, and he has worked in the options industry for over 20 years in trading, product innovation, and risk management roles.

In this episode, Simon and Jeff touch base on the various unique index products at T3, like YLD Vol, ETH Vol, and the VIX competitor SPIKES.  They talk through just how SPIKES differs from the VIX, the unusual behavior currently playing out in stock index volatility, the futures, options and ETFs based on SPIKES, and so much more. Plus, Simon gives his hottest takes. Will you be tuning in? SEND IT!

Chapters:

00:00-02:05 = Intro

02:06-11:05 = A robust background to crafting a robust index

11:06-15:53 = Helping hedge funds generate alpha & Tail risk events

15:54-25:38 = It's Coke - Here's Pepsi: Improving on VIX with SPIKES

25:39-35:37 = The unusual behavior of the current state of volatility

35:38-43:41 = T3 Index, MIAX & skew indexes

43:42-55:03 = SPIKES stress test, the creation of the VOL index & Hottest take

Show Notes:

Follow along with Simon on Twitter @t3index and for more information on T3 Index visit t3index.com and check out MIAX at miaxoptions.com

Don't forget to subscribe to The Derivative, follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2, 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

Otherworldly forces can affect the market and hurt it just as much. Hurricane Ian continues to bring surges, winds, and flooding to Florida, and we have our own hurricane swirling around the set. That's right, we're bringing two forces together this week in a mashup of two previous pods with Hurricane Hunter Dr. Jeff Masters and Re-Insurance pro Chris Mckeown. We're revisiting what Dr. Jeff has to say on hurricanes and how you can track them, and we're also talking catastrophe bonds with Chris McKeown.

You'll want to add this special episode to your playlist to learn more about; building weather models, the financial impacts of a storm, fat tails outside of financial markets… yes they are there too (let's just say it's a complex system), off-loading risk via reinsurance, CAT bonds, structural issues in an upside market, and so much more — SEND IT!

Chapters:

00:00-01:58 = Intro

01:59-20:41 =  Hurricane Hunting, “The Final Flight”, & Weather Underground

20:42-32:10 = Building Weather Models w/ 15km Global Grids

32:11-46:47 = Storm Financial Impacts, Catastrophe Bonds & Fat Tails ( It’s a complex system)

46:48-50:57 = Favorite Hurricane

50:58-51:22 = *** break ***

51:23-01:06:00 = Off-loading Risk via Reinsurance, Capital Deployment & Investor portfolio protection

01:06:01-01:13:14 = Cat Bonds & Structural Issues in an Upside Down Market

From the episode:

Check out Dr. Jeff Masters on Yale Climate Connections blog Eye on the Storm, follow him on Twitter @DrJeffMasters, and visit wunderground.com

Visit VantageRisk.com for more information on Re-Insurance, Chris McKeown and his team

Don't forget to subscribe to The Derivative, follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2, 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

We have a little saying over here on The Derivative, The More, The Merrier, and on this week's episode of The Derivative, we're not chatting with one guest, but THREE! Class may no longer be in session, but we are taking a trip down the SIG/Susquehanna memory lane and having our own class reunion with Kris Abdelmessih, Michael Steiner, and Tina Lindstrom.

If you're interested in learning how big trading firms find and teach their traders, hold on to your seat because these three give you the answer key! Kris, Tina, and Michael are in session with Jeff and discussing competing with peers, finding an option’s fair value, making markets, and being in the game of trading, educating kids with board games, and of course Steiner’s new trading board game: Stock Slam! Discover how the game works and how you can join up with these three in NYC for a live session in this three-of-a-kind episode — SEND IT!

Chapters:

00:00-2:06 = Intro

02:07-21:10 = Competing with peers & if you are teachable?

21:11-35:18 = Options, WhenTech, Fair value & Being in the game

35:19-46:09 = Are board games for fun or for learning?

46:10-57:38 = Stock Slam: Bridging to real-world concepts

57:39-01:16:24 = The components of the game & meet up in NYC

01:16:25-01:20:10 = Last thoughts

From the episode:

NYC meet-up application for StockSlam Sessions  

Check out Moontower Weekly by Kris Abdelmessih

Follow Kris on Twitter @KrisAbdelmessih and Tina on Twitter @moreproteinbars

Don't forget to subscribe to The Derivative, follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2, 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 the chaotic world we’ve endured since 2020, it turns out all you needed was an outlier-loving strategy to get you through the storm. We’re talking managed futures and trend following in particular, which tend to thrive in periods of turmoil. But how can you effectively prepare for a wide range of market environments while still producing returns that allow for the investor to stick with the investment.  Eric Crittenden, Founder and Chief Investment Officer of Standpoint, sits down with Jeff to discuss the ever-changing trends and providing the right formula for surviving the chaos.

In this episode, Eric and Jeff take a closer look into what has changed since they last chatted on the pod in 2020; needing a healthy investor/advisor/asset manager triangle, the sweet sound of directional volatility, Trend as an inflation hedge, being short bonds(good or bad), the thankless job of a trend follower, if trend following’s long grain positions were war profiteering, and so much more! Plus, get Eric's hot take on the LME; did they do the right thing? Find out here — SEND IT!

Chapters:

00:00-01:58 = Intro

01:59-07:54 = What's changed since 2020

07:55-28:10 = Wants vs Needs, a Healthy Triangle & Directional volatility

28:11-38:17 = Trend as inflation protection, not a hedge & an All-weather video walkthrough

38:18-57:19 = Being short bonds: good or bad, the Nat Gas widow maker & the Max capacity program

57:20-01:17:21 = Foreign equities, the Nickel Mess & Trend followers are not evil

01:17:22-01:23:27 = Hot take: LME did the right thing

From the Episode:

Check out: A Story: Standpoint vs. Equities - June 2022

Eric's previous episode on the Derivative: BLNDX(ING) Trend Following and Global Equity with Standpoint's Eric Crittenden

See Eric featured in our latest Trend Following Guide

Follow along with Standpoint on Twitter @StandpointFunds and for more information on Eric and his team at Standpoint visit their website at standpointfunds.com

Don't forget to subscribe to The Derivative, follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2, 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

It's not every day you get to sit down with a Volatility veteran with over 30 years of experience…..Well, maybe it’s a bit more common here on the Derivative than elsewhere, but we’ve got a special treat with Ari Bergmann(@AriBergmann) joining Jeff on this week's Derivative episode. Listen in as they dive into where to find convexity, why that’s not the same thing as buying lottery tickets, how there’s a difference between a low price and a value, and the processes needed to maintain portfolios of convex instruments. Ari is the Founder and Managing Principal/CIO at Penso Advisors, where he leads the firm's investment committee and manages various Penso funds and clients' mandates.

Ari and Jeff are sorting through all of the Volatility mumbo jumbo and taking a closer look at the practical limits of cheap convexity, where imbalances come from in residuals and structured notes; how the ignorance of the possibility of a second leg down formed and still exists, trading complex options vs. vanilla options, the importance of monetization, and so much more! Plus, Ari is giving his hottest take on gold and why it's crucial to keep your personal life private — SEND IT!

Chapters:

00:00-01:53 = Intro

01:54-14:38 = Confusion de Confusiones & the start of Penso

14:39-24:48 = Approaching the limits of cheap convexity, residuals & structured notes

24:49-34:45 = Ignorance and Opportunities for a Second leg down

34:46-42:51 = Dual digital, complex options vs vanilla options & the importance of Monetization

42:52-52:19 = Always rebalance your portfolio

52:20-56:32 = Hottest take: Gold is good & Keep your personal life private

From the Episode:

Check out and read Confusion de Confusiones

Follow along with Ari on Twitter @AriBergmann and for more information on Ari and his team at Penso Advisors visit their website at www.penso.com 

Don't forget to subscribe to The Derivative, follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2, 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

For those lucky few who’ve sold a business, inherited wealth, or otherwise find themselves in the enviable position of staying wealthy, not getting wealthy – the investment game can be more about playing defense than going on offense. But how do you go about that, who do you partner with to figure out complex tax and estate issues. This week, Jeff is sitting down with Homer Smith(@HomerSmith_KWP), the founder of Konvergent Wealth Management, to dig into just how investment advisors like him go about solving the complex financial challenges end investors face.

Homer and Jeff dive into a variety of topics, including how allocating to managers differs from being an asset manager, how to add DEFENCE to build an all-weather portfolio, the benefits of return stacking (Be sure to check out this WP on Return Stacking), how to navigate and scale an investment firm, and take a closer look into the future of wealth service. Plus, we're playing two truths and a lie with Homer; tune in to see if he really is Matt Damon's stunt double — SEND IT!

Chapters:

00:00-01:13 = Intro

01:14-11:51 = Flipping the Script: How Picking the Managers differs from Being the Manager

11:52-28:34 = Adding DEFENCE to make an all-weather portfolio

28:35-37:23 = Return Stacking, Leverage & Wealth destruction in the Tech Wreck

37:24-58:56 = The RIA: Then vs Now, helping navigate life, scaling your firm & the Future of Wealth Services

58:57-01:05:06 = Two Truths and a Lie: Matt Damon's Stunt double?

Follow along with Homer on Twitter @HomerSmith_KWP and also Konvergent Wealth @KonvergentWP and for more information check out Konvergentwealth.com

Don't forget to subscribe to The Derivative, follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2, 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

Summer’s nearly over and class is definitely back in session for this episode, as we're about to get schooled on options and trying to separate the scams from the science. This week we're delivering the long-awaited episode with Dr. Benn Eifert, a Derivative appointed Jedi of Volatility from QVR Advisors, and Dr. David Rhoiney, who overcame being homeless to become a robotic surgeon who is learning the financial ropes and sharing his journey on Twitter from Surgifi.

David has questions: what do you do with all the Greeks, can’t you tell a trend is starting by analyzing options volume, what about skew?  And Benn has the answers in this entertaining 70-minute lively back and forth. They touch on being an independent thinker like David to come to your own investing conclusions, whether the options courses out there are knowingly selling lies, or more innocently peddling luck and lottery tickets. Why Black Scholes doesn’t really do anything except normalize prices…meaning there’s no secret math that lets you ‘figure out’ options. How trend following only works 25% of the time, Nancy Pelosi’s high fee LEAPS trades, Nassim Taleb’s tail hedges, why it counter-intuitively makes sense to add a losing asset to your portfolio, and so much more! Plus, we discuss should retail investors walk away from options and how not to get caught up in the index funds cult — SEND IT!

Chapters:

00:00-01:54 = Intro

01:55-21:52 = Greeks, Bid/Ask, a Tech Stack… where do you even get started?

21:53-39:36 = Implied Volatility doesn’t tell you anything about what to do

39:37-58:36 = Someone selling you a trade based on skew = run the other way

58:37-01:12:15 = Pelosi’s LEAPS? Taleb’s Tail Hedges? Why add a losing asset? 

01:12:16-01:17:22 = Hottest takes: just walk away from Options, steak is overrated, and the Devil’s nipples

From the episode:

Benn Eifert's Tweet on adding Tail Risk

Surgifi's newsletter

Follow along with Benn Eifert on Twitter @bennpeifert and David Rhoiney on Twitter @FiSurgi. For more information on QVR Advisors check out their website www.qvradvisors.com and for more on Surgifi visit surgifi.com

Don't forget to subscribe to The Derivative, follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2, 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