'The typical pie-chart of diversification ends up being all long-GDP assets, which means these are going to do well in a risk-on environment, when we’re awash with liquidity. The problem is, when we see a sell off or a liquidity event like March 2020, we see the correlations of an ‘uncorrelated’ pie chart go to 1, which means that they all sell off at the same time.' - Jason Buck
What happens when an unexpected major event occurs and all of your supposedly diversified investments suddenly become correlated, before heading sharply to the downside? Jason Buck and his partner at Mutiny Fund have been thinking about this question for a long-time, and have created a portfolio designed to protect against these ‘Black Swan’, high-volatility events. You may have seen Jason Buck alongside another volatility-expert (and previous guest of Top Traders Unplugged) Chris Cole on Real Vision, or listened to his ‘Pirates of Finance’ podcast with co-host Corey Hoffstein (another previous guest of Top Traders Unplugged), but he’s also been a long-time listener of the show, so it was only right that I invited him on to discuss some of the methods and thinking behind Mutiny Fund, and how these approaches can provide protection and profits during all market environments.
Thanks for listening and please welcome to the show our guest Jason Buck.
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'The problem with Sharpe Ratio is that it was originally built as a portfolio tool to measure the portfolio level, but now we measure individual strategies or individual managers with Sharpe, and that was never the intention.’ - Jason Buck
Visit the Website: MutinyFund.com
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‘We had a lot of family and friends coming to us and saying, I've read a Nassim Taleb book or Chris Cole's white paper. How do I do this? And if you don't have tens of millions of dollars, there was never a solution. So as entrepreneurs, we figured out there had to be a solution to this, and the piece that was missing was this long volatility, tail risk piece. And so we set out to create that opportunity for retail to get access to this asset class.' - Jason Buck
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- - - - - - - -115 Protection Against Black Swans & Building a Bulletproof Portfolio with Jason Buck of Mutiny Fund on Top Traders Unplugged.