Rick Selvala - Harvesting Volatility (Capital Allocators, EP.41)

<p>Rick Selvala is the co-founder and CEO of Harvest Volatility, a ten-year old manager of a variety of volatility strategies that oversees $13 billion in assets. After starting his career in the Treasury department at General Motors in the mid 1980s, Rick has spent nearly three decades trading derivatives on the sell side and buy side. Rick has an uncanny ability to break down this complicated investment area and make it sound simple.</p> <p>Our conversation discusses the world of volatility, including intelligent uses of derivatives, overcoming headline risk, characteristics of successful traders, assessment of alpha, the current volatility environment, and strategies that capture returns.  His insights left me thinking twice about some of the assumptions my System 1 brain had formed about volatility. Time for System 2 to go to work.</p> <p><strong>DONATE TO CYCLE FOR SURVIVAL, </strong><a href= "http://mskcc.convio.net/goto/ted"><strong>http://mskcc.convio.net/goto/ted</strong></a><strong>.</strong></p> <p><strong>Learn More</strong></p> <p>Join Ted's mailing list at <a href= "http://capitalallocatorspodcast.com">CapitalAllocatorsPodcast.com</a></p> <p>Write a review on <a href= "https://itunes.apple.com/us/podcast/capital-allocators-with-ted-seides/id1223764016">iTunes</a></p> <p>Follow Ted on twitter at <a href= "http://www.twitter.com/tseides">@tseides</a></p> <p>For more episodes go to <a href= "http://capitalallocatorspodcast.com/podcast">CapitalAllocatorsPodcast.com/Podcast</a></p> <p> </p> <p><strong>Show Notes</strong></p> <p><strong>DONATE TO CYCLE FOR SURVIVAL, </strong><a href= "http://mskcc.convio.net/goto/ted"><strong>http://mskcc.convio.net/goto/ted</strong></a><strong>.</strong></p> <p>3:03 – Rick’s path to Harvest</p> <p>5:17 – How should one think about volatility as an asset class</p> <p>7:56 – Volatility as a path to enhance yield</p> <p>11:07 – Is there a programmatic way to implement</p> <p>12:55 – Volatility as a path for insurance</p> <p>15:45 – Where do people go wrong with leverage</p>