E-piphany

Imagine if you could be a hedge fund investor, or pension or wealth management CIO, thirty-five years ago instead of in 2024. With all of the inefficiencies that persisted before they were exploited and squeezed out by high-frequency trading, automated spread trading, and even fast-moving opportunistic asset allocation models, the opportunity set for alpha was rich and persistent.

Now imagine that there is a market today where such inefficiencies still exist: a market which is poorly understood both at the security and portfolio structure levels, due to the absence of a granular understanding of the drivers of valuation. Wouldn’t you want to be allocating capital energetically to that market? There is such a market: the market for inflation-linked and inflation-adjacent instruments.

If you were going to exploit those opportunities today, you’d need someone who exists on the cutting edge frontier of understanding that market. You don’t want to assail Everest without a sherpa. To explore these opportunities in different forms including long-only, hedge fund, or a factor overlay recognizing embedded bets in a core strategy, you need an inflation sherpa.

To echo the Cents and Sensibililty podcast: you know a guy. If you’re interested, please let me know.