Podcast series by Dean Curnutt, Alpha Exchange

Alpha Exchange

Podcast series by Dean Curnutt

The Alpha Exchange is a podcast series launched by Dean Curnutt to explore topics in financial markets, risk management and capital allocation in the alternatives industry. Our in depth discussions with highly established industry professionals seek to uncover the nuanced and complex interactions between economic, monetary, financial, regulatory and geopolitical sources of risk. We aim to learn from the perspective our guests can bring with respect to the history of financial and business cycles, promoting a better understanding among listeners as to how prior periods provide important context to present day dynamics. The “price of risk” is an important topic. Here we engage experts in their assessment of risk premium levels in the context of uncertainty. Is the level of compensation attractive? Because Central Banks have played so important a role in markets post crisis, our discussions sometimes aim to better understand the evolution of monetary policy and the degree to which the real and financial economy will be impacted. An especially important area of focus is on derivative products and how they interact with risk taking and carry dynamics. Our conversations seek to enlighten listeners, for example, as to the factors that promoted the February melt-down of the VIX complex. We do NOT ask our guests for their political opinions. We seek a better understanding of the market impact of regulatory change, election outcomes and events of geopolitical consequence. Our discussions cover markets from a macro perspective with an assessment of risk and opportunity across asset classes. Within equity markets, we may explore the relative attractiveness of sectors but will NOT discuss single stocks.

Technical Analysis

NVIDIA Corporation designs, develops, and markets three dimensional (3D) graphics processors and related software.  The Company's products provide interactive 3D graphics to the mainstream personal computer market.

<ul>
<li>Nvidia set a new record for the largest single one day loss of market cap, losing 700 billion on a 17% down move</li>
<li>Market risk is about being wrongly sized and underestimating volatility, diversifying assets such as gold, Bitcoin, and broad market put spreads is recommended</li>
<li>Financial market insurance is not like hurricane insurance, as exposures within markets are interconnected and risk can be amplified when positions are crowded</li>
</ul>
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.


Nvidia set a new record for the largest single one day loss of market cap, losing 700 billion on a 17% down move
Market risk is about being wrongly sized and underestimating volatility, diversifying assets such as gold, Bitcoin, and broad market put spreads is recommended
Financial market insurance is not like hurricane insurance, as exposures within markets are interconnected and risk can be amplified when positions are crowded

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Cross Asset Strategy

<ul><li>2024 was a record year for ETF flows, with $1.1 trillion in inflows, resulting in 32% global asset growth</li><li>Eric Balcunas discusses the impact of John Bogle on lowering fees in the industry, estimating savings of $1 trillion for investors</li><li>Innovations in the ETF market include leveraged and crypto exposure ETFs, with predictions of continued growth in the industry reaching $35 trillion by 2034</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

2024 was a record year for ETF flows, with $1.1 trillion in inflows, resulting in 32% global asset growthEric Balcunas discusses the impact of John Bogle on lowering fees in the industry, estimating savings of $1 trillion for investorsInnovations in the ETF market include leveraged and crypto exposure ETFs, with predictions of continued growth in the industry reaching $35 trillion by 2034This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Eric Balchunas, Senior ETF Analyst, Bloomberg Intelligence

Equity Bottom-Up

IShares Bitcoin Trust ETF / Equity Bottom-Up

iShares Bitcoin Trust ETF is an exchange-traded fund domiciled in the USA. The investment objective is to reflect the performance of spot bitcoin.

<ul><li>Realize Volatility is a cause, not an effect, and can lead to inaction</li><li>Options on iBit, the Bitcoin ETF, are becoming a critical industry risk management tool</li><li>IBIT options have seen stunning volumes and substantial open interest, leading to price discovery and a growing liquidity ecosystem</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Realize Volatility is a cause, not an effect, and can lead to inactionOptions on iBit, the Bitcoin ETF, are becoming a critical industry risk management toolIBIT options have seen stunning volumes and substantial open interest, leading to price discovery and a growing liquidity ecosystemThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Strategy Inc operates a bitcoin treasury company. The Company offers an equity and fixed income instruments to provide investors varying degrees of economic exposure to bitcoin, as well as develops enterprise analytics software to explore improvement in bitcoin applications. Strategy serves customers worldwide.

<ul><li>Mike Green explains how leveraged products on MSTR resemble a short straddle in their rebalancing requirements</li><li>The two times leveraged long products, MSTU and MSTX, are unique due to their large size and underlying asset volatility, creating potential volume amplifying feedback loops</li><li>The leveraged complex has contributed to the large premium of MSTR to the value of its bitcoin holdings, impacting ETFs forced to use options market due to limited leverage from swap providers</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Mike Green explains how leveraged products on MSTR resemble a short straddle in their rebalancing requirementsThe two times leveraged long products, MSTU and MSTX, are unique due to their large size and underlying asset volatility, creating potential volume amplifying feedback loopsThe leveraged complex has contributed to the large premium of MSTR to the value of its bitcoin holdings, impacting ETFs forced to use options market due to limited leverage from swap providersThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Michael Green, CFA, Portfolio Manager, Chief Strategist, Simplify Asset Management

Crypto

Virtual currencies are decentralized, math-based digital assets in which transactions can be performed cryptographically without the need for a central issuing authority. The first specification and proof of concept of Bitcoin, the first widely used virtual currency, was published in 2009 based on a paper published pseudonymously by Satoshi Nakamoto.

<ul>
<li>Discussion of ins and outs of option pricing and market risk</li>
<li>Examples of price volume spirals in meltdown and melt up scenarios</li>
<li>Exploration of value and instability in market dynamics</li>
</ul>
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.


Discussion of ins and outs of option pricing and market risk
Examples of price volume spirals in meltdown and melt up scenarios
Exploration of value and instability in market dynamics

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.