63 min listen
Dylan Grice, Co-founder, Calderwood Capital
FromAlpha Exchange
ratings:
Length:
49 minutes
Released:
Jan 20, 2023
Format:
Podcast episode
Description
A "beaten path" refers to a route that is frequently traveled. In markets, for years, this path led investors to be long both stocks and bonds in unison under the premise that duration exposure would mitigate losses during a sell-off in risk assets. In 2022, amidst sharply rising inflation, investors learned painful lessons that stock and bond prices can become highly correlated. For Dylan Grice, Co-founder of Calderwood Capital, the search for exposures that are off the beaten path has always been a natural pursuit.Originally trained as an economist, Dylan realized early in his career that he was less geared towards making predictions. Instead, his focus is on evaluating the price of uncertainty, looking for opportunities to invest with hedge fund managers that emerge when the price of risk is favorable on either the long or short vol side of the ledger. In his search for cheap optionality, Dylan saw value in being short mortgages in 2021, a time during which interest rate volatility was exceedingly depressed by the forceful promises of the Fed, convinced that inflation was transitory.He and team have also found opportunities to be well compensated to absorb risk, typically occurring when a market’s capacity to do so has been compromised. Such is the case in the reinsurance market now, where premiums post Hurricane Ida have increased substantially on the back of huge losses suffered. As catastrophe risk is fundamentally unique relative to market risk, adding exposure here is part of the low correlation set of strategies sought by Calderwood.I hope you enjoy this episode of the Alpha Exchange, my conversation with Dylan Grice. To learn more about Calderwood Capital, please visit www.calderwoodcapital.com.
Released:
Jan 20, 2023
Format:
Podcast episode
Titles in the series (100)
Eric Peters, One River Asset Management: Beginning his career in Chicago trading corn futures in the late 1980’s, Eric Peters moved into the sharp elbowed world of bond futures trading on the CBOT and then went to a bank, prop trading rates and derivatives through the 1990’s. His perspectives on the exchange rate mechanism crisis in 1992 and the bond market massacre in 1994 provide significant insight on the way in which policy frameworks invite risk taking that can ultimately lead to instability. Utilizing many of these lessons on risk, Eric founded One River Asset Management, a firm that delivers bespoke solutions to institutional investors, helping them navigate markets in the post-crisis era. As 2018 comes to a close, Eric sees a long period of adjustment to a higher volatility regime in both the risk asset complex as well as inflation. by Alpha Exchange