Blog Posts

Market microstructure is a specialized area within finance that explains how assets are exchanged in markets. Though buying and selling in financial markets seems simple (there’s a buyer and a seller and they connect when bid/ask match), it’s actually a very deep topic. We’re not talking about more overarching strategies like value, macro, and so […]

Deciding whether to hire a financial advisor is an important decision that can significantly impact your financial future. With many factors to consider, from the benefits of hiring an expert to the potential costs and alternatives, this guide will help you make an informed choice. We’ll look into the advantages and disadvantages of hiring a […]

After over 60,000 hours in the markets, this is what I’ve learned. These reflections are just my own perspective. There are many viable ways of doing things. They’re not definitive answers, but observations you may find useful as you develop/refine your own approach. Take what resonates, question what doesn’t, and remember that the ultimate test […]

SOFR is a benchmark interest rate that’s pervasively used to set rates for various types of financial transactions. We look at SOFR, how its traded, how lending is based off this rate, and more about its use.   Key Takeaways – SOFR SOFR is a wholesale interest rate benchmark referencing overnight borrowing secured by US […]

There are now thousands of different ETFs, with many of them providing different exposures to various parts of the market. The main drawback, however, is that most of these ETFs are naturally equity funds. And even if you’re in different sectors – e.g., tech ETF, consumer staples ETF, healthcare ETF – you know that stocks […]

Section 899 is a proposed US tax provision designed as a retaliatory tax mechanism against countries that impose what the US considers discriminatory taxes on American firms. It especially targets digital services taxes (DSTs) and certain global minimum tax regimes. Section 899 is potentially a big deal and is being studied by institutional investors because […]

A tokenized money fund is a traditional money market fund (MMF) whose shares exist as digital tokens on a blockchain.  Each token is a claim on the underlying assets of the fund, which are typically short-term, low-risk instruments. The economic exposure itself is much like a traditional MMF. The ownership record and transfer themselves occur […]

The concept of leverage involves using borrowed capital for investment and amplifying the potential returns. While leverage can magnify profits, it also magnifies losses. Below we focus on how you can generate leverage in your portfolio, through options, futures, borrowing, shorting, and more.   Key Takeaways – How to Generate Leverage in a Portfolio Leverage […]

In institutional settings, and for advanced individual traders, beta portfolios are often given a slight boost with leverage. This is often done with futures or other derivatives (e.g., options) that embed institutional borrowing rates (rather than paying retail markups). But what is the optimal leverage ratio? Too little gives you modest returns. Too much exposes […]

Investor letters are an important form of client communication for trading shops, hedge funds, and all investors that require giving performance and outlook updates to limited partners (LPs) and other stakeholders. We’ll cover what all is involved in one and an example at the end.   Key Takeaways – Investor Letters Investor letters are important […]