23 Top Traders Round Table with Chris Cole, Matthew Sargaison, and Dan Stone – 2of2 - a podcast by Niels Kaastrup-Larsen

"This is where the populism intercedes with the market risks. I think people look at these risks as independent risks, so they're not looking at them and how they interrelate with the ecosystem of financial products, as well." - Chris Cole (Tweet)

Welcome to Top Traders Round Table, a podcast series on managed futures brought to you by CME Group and the Managed Funds Association, where guest host Chris Solarz continues his conversation with Chris Cole, the Founder and CIO of Artemis Capital Management, Matthew Sargaison, co-CEO at AHL at Man Investments, and Dan Stone, co-founder of Ionic Capital. Our guests today go over the changing markets and why despite trend following's recent underperformance, their clients still look to it as protection for their portfolio. They will also continue their discussion on the intersection of populism, politics, and quantitative easing, as well as the relationship between corporate debt and GDP and its long term trends.



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In This Episode, You'll Learn:



How the recent quantitative easing could be moving into quantitative tightening, and what that means for investors

The intersection of populism, politics, and quantitative easing

How opportunities in the markets are changing managers behavior



"I think big institutions are so hedge fatigued, that they don't want to pay up for volatility of volatility. They are essentially saying, 'why do I need to buy fire insurance when the FED will put out my fire for me?'." - Chris Cole (Tweet)



Why Matthew is happy with the current market environment

Which asset classes currently offer a cheap volatility

What the recent huge spikes in VIX meant for long vol and short vol traders



"Is there a strategy out there that still gives you a positive expectation but has a meaningful negative correlation? Because it's so hard to find negative correlation in the hedge fund world or in the investment world more broadly right now." - Dan Stone (Tweet)



Who in the investing space is looking for the protection of hedging for their portfolio

Why trend following is still successful despite it's recent difficulties in the market

The meaning of the recent change of Growth outperforming Value



This episode was sponsored by CME Group and Managed Funds Association:

 





Connect with our guests:

Learn more about Chris Cole and Artemis Capital Management

Learn more about Matthew Sargaison and Man AHL

Learn more about Dan Stone and Ionic Capital

"It's going to be a wonderful time to make opportunity from change, as opposed to the last 10 years, which has been trying to squeeze juice out of a short vol trade." - Chris Cole (Tweet)

Full Transcript

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Niels

Welcome back to Top Traders Round Table, a podcast series on managed futures brought to you by CME Group and the Managed Fund Association, where our guest host today, Chris Solarz, continues his conversation with Chris Cole, Dan Stone, and Matthew Sargaison, where they discuss global macroeconomic market risks, volatility trading, and tail risk hedging. So, without further ado, let's rejoin the conversation. 

Chris S

I think, just to loop this back to our initial comments, I think the suppression of volatility has come at the hand of quantitative easing which pushed interest rates down to zero around the world. Even today there are still eight to ten trillion dollars of negative yielding sovereign bonds. This has lead to this reach for yield, which has lead to deterioration of credit quality. It's also lead to the short vol products where you're selling premium and collecting the coupons,

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