In this episode of The Derivative, Jeff Malec is joined by Patrick Kazley of OneRiver explore how long volatility, convexity, trend following, and systematic macro can be combined in a capital‑efficient way to improve equity compounding and protect portfolios from major drawdowns. They discuss crisis “shapes,” why time-based rebalancing often beats intuitive drawdown triggers, how changing volatility microstructure (zero‑DTE, single-name vol, dispersion) creates new opportunities, and why behavioral biases keep most investors under-allocated to positively skewed defensive strategies. Patrick ties it all together with vivid metaphors — from F1 cars and soup vs. salad to sumo wrestlers and the beer boot — and explains how One River’s acquisition of a European alternatives/QIS team fits into their total-portfolio approach..… SEND IT!
Chapters:
00:00-02:21 = Intro
02:22-12:33= From AQR to One River – Patrick’s Background and the Case for Systematic Risk Mitigation
12:34-28:07 = Engines and Brakes – Equity Beta, Skew, and the Power of Convexity
28:08-43:55= Crisis Types, Trend Following, and Building a Total Portfolio Defense
43:56-1:03:04= Visualizing Risk – Crisis Shapes, Rebalancing, and the Math of Convexity
1:03:05-1:16:36= Metaphors, Markets, and M&A – From F1 Cars to Das Boot and One River’s Next Phase
1:16:37-1:28:37= Soup vs. Salad – Total Portfolio Thinking and the Future of One RiverFrom the Episode:
Blog post: A Short History of Market-Moving Middle East Conflicts
OneRiver's WhitepapersFollow along with Patrick and OneRiver on LinkedIn and make sure to check out OneRiver's website www.oneriveram.com
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Disclaimer: This podcast is provided for informational purposes only and should not be relied upon as legal, business, or tax advice. All opinions expressed by podcast participants are solely their own opinions and do not necessarily reflect the opinions of RCM Alternatives, their affiliates, or companies featured. Due to industry regulations, participants on this podcast are instructed not to make specific trade recommendations, nor reference past or potential profits. And listeners are reminded that managed futures, commodity trading, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. For more information, visitwww.rcmalternatives.com/disclaimer
