Blog Posts

Seth Klarman is the head of the Baupost Group and one of the most respected investors and overall market minds of all time. He has built a legacy on a foundation of discipline, patience, and a nuanced understanding of value investing.  Known for his contrarian approach and commitment to long-term wealth creation, Klarman has been […]

An edge in trading refers to any factor or set of factors that give a trader a consistent advantage over others in the market. The main three edges in trading are: analytical (what most try to do) informational technological In this article, we’ll explore the different types of edge a trader can possess, how to […]

A swap spread is the difference between the fixed rate on an interest rate swap and the yield on a government bond of the same maturity.  Interest rate swaps are financial instruments where two parties exchange cash flows. One party: pays a fixed rate, and the other pays a floating rate based on a benchmark […]

Michael Steinhardt is one of the most famous traders from the 1970s-2000s period, known for his pioneering work in the hedge fund industry and his ability to achieve exceptional returns over nearly three decades.  We look into the methods, mindset, and legacy of someone whose career redefined hedge fund management.   Key Takeaways – Michael […]

Cash reserves in the financial system influence markets in ways that are both nuanced and significant. Traders often hear about “cash on the sidelines” as a bullish argument (when they purportedly exist and vice versa when they don’t). But understanding how cash reserves interact with asset prices requires knowing more about the mechanics of money […]

How to Invest is a book written by David Rubinstein. In this article, we summarize the main points of what makes a good investor in Rubinstein’s view.   Key Summary – “How to Invest” Summary – The Qualities of Good Investors Highly motivated, often coming from blue-collar or middle-class families. Good education and strong academic […]

Cash on the sidelines is a term that traders refer to in order to describe how much capital is supposedly out there to go into financial assets. The price of a financial asset is just money and credit divided by the quantity of it. So while things like valuations and determining notional fundamental values of […]

Julian Robertson (1932-2022) was the founder of Tiger Management, and is celebrated as one of the most influential figures in hedge fund history.  We look into his trading strategy, markets philosophy, and the lessons traders and investors can glean from his storied career.   Key Takeaways – Julian Robertson Trading Strategy & Philosophy Prioritize Deep […]

Designing a less volatile equities portfolio requires an approach that blends macroeconomic insights with strategic cash flow management.  The crux of this approach involves focusing on stable cash flow streams and incorporating macroeconomic overlays to better control the short-term volatility. This way, an equities portfolio can reduce downside exposure while maintaining resilience across varying market […]

Overlays in trading involve adding specific strategies or positions to manage risks or improve returns without taking away from the core holdings of the portfolio. Overlays can be applied to various aspects of financial markets, including currencies, volatility, commodities, and more.   Key Takeaways – Overlays in Trading Risk Management – Overlays allow better precision […]