Peter Wagner

On April 10th, Consensys has received a wells notice by SEC. The SEC believes that Consensys is functioning as an unregistered broker-dealer through its earnings from the MetaMask Swaps and MetaMask Staking products. Now Consensys sues SEC over ‘Unlawful Seizure Of Authority’ over Ethereum. Consensys is seeking a legal determination that: - Its MetaMask Swaps service does not classify Consensys as a broker-dealer - The MetaMask Staking service does not constitute a securities offering - Ether (ETH), the native cryptocurrency of the Ethereum blockchain, is not considered a security. MetaMask Swaps enables communication with third-party decentralized exchanges and charges a 0.875% service fee. Regardless of whether this could be considered a broker-dealer role, it seems counterproductive to me that US regulators and industry members are quickly escalating issues to court rather than finding consensus at a roundtable.

14

2 Comments

It’s exciting to see Open Field’s long-term vision and investments play out across the AI megatrend, including those such as Cerebras, focused on “new AI hardware solutions”!

1

About 15 years ago, Jim Simons was driving to Boston to give a speech at his alma mater, MIT. He had retired a year before. He was 72 years old. He was, at the time, the most successful hedge fund manager of all time. His wife asked if he was going to mention any guiding principles that made him successful. At first, he thought, “I don’t know that I have any.” Upon reflection, he wrote down five that are both pithy and profound. -Don’t Run with The Pack -Hire the Smartest People -Don’t Give Up Easily -Be Guided by Beauty -Hope For Good Luck! Simons arrived at his list organically after building his business. It doesn’t feel artificial. It’s not derived from some acronym. It reflects what worked for him over the course of a remarkable life. Simons died yesterday at the age of 86. His career consisted of following one passion to the next, ten-year building blocks stacked one on the other. After Simons graduated with his PhD, he worked as a code breaker for the government during the Cold War. He was fired for opposing the Vietnam War. Next, he spent a decade running the math department at Stony Brook University. At about 40, his life took a serious turn. Simmons became so interested in markets and convinced he could build a better system that he quit his prestigious job to trade stocks in an office over a strip mall. DON’T RUN WITH THE PACK Having never worked in the financial industry, he proceeded to hire a group of physicists and astronomers to build something new, a quant trading firm. HIRE THE SMARTEST PEOPLE He spent 10 years building a platform based on data that didn’t work until all of a sudden it did. It became a flywheel that minted money. DON’T GIVE UP EASILY He built the most successful financial firm in history without hiring anyone from Wall Street. He regarded doing something well as a form of art.  BE GUIDED BY BEAUTY The Medallion Fund, launched in 1988, went on to return 66% a year and generate more than $100 billion in trading profits. HOPE FOR GOOD LUCK He was never celebrity famous like Warren Buffet. He didn’t tweet principles like Ray Dalio. He didn’t buy a sports team like Steve Cohen. He was well known for his habit of not wearing socks and chain-smoking cigarettes. Simons’ success lay in combining his mathematical prowess and insights with a passion to build and inspire teams of people. In the MIT speech, he lays out his recipe: “Great people. Great infrastructure. Open environment. Get everyone compensated roughly based on the overall performance… That made a lot of money.” Gregory Zuckerman wrote the definitive book on Simons called The Man Who Solved the Market. Simons didn’t want it written. Later, he said it is “pretty good.” Ironically, it probably did more than anything to cement his reputation as the world’s best performing hedge fund manager.

7

Noel Smith thank you for the opportunity Noel! 1. How does volatility risk affect the performance of dispersion trading, especially when the realized volatility of individual stocks deviates from expectations? Specifically, what are the potential consequences if stock volatilities increase but remain highly correlated with each other, and how might this impact the profitability of the strategy? 2. During periods of market stress, how does the breakdown in correlation affect dispersion trading strategies? What are the specific risks and consequences when correlations between individual stocks and the broader market spike, leading to a reduction in dispersion, particularly in scenarios where stock prices move in lockstep due to panic selling? 3. Risk Parity: How can capital be allocated across different legs of a trade in proportion to the risk contribution of each leg, ensuring a balanced risk exposure in strategies like dispersion or correlation trading?

3

Excellent insight from Daniel Ezra. The market clearly needs the solution Entegra offers to mitigate unnecessary volatility caused by the "juniorization" of trading complex assets.

4

$AMD remains higher by nearly 8% pre-mkt, ($149.50 vs. 138.44 close) Very notable was the upside to its MI300 GPU outlook of 4.5b (500mm above prior guidance) https://bit.ly/3zhabe3 Breakdown of May lows made this difficult to have confidence technically prior to earnings & even on bounce, has some work to do before regaining some strength- Note that stock is finding resistance near prior mid-June lows @Marketsurge chart by @IBDinvestors below #IBDPartner

11

The benchmark KSE-100 index closed at 93,292, marking a robust increase of 2,432 points, or 2.7% week-on-week (WoW). JS Global Deputy Head Research Muhammad Waqas Ghani wrote that the stock market remained bullish during the outgoing week. During the week, the SBP cut its policy rate by an additional 250 basis points to 15%. The decision was mainly influenced by the declining inflation trend, which marked the 4th consecutive rate cut in the ongoing easing cycle, bringing cumulative reduction to 700 basis points from the peak of 22%, he said. Market got a further boost when eight Pakistani companies were added to the MSCI Frontier Markets Small Cap Index, a move expected to attract global investors and accelerate foreign fund inflows. According to the SBP data, remittances for October 2024 reached $3.05bn, marking a 24% increase compared to the same period of last year, the JS deputy head added. https://lnkd.in/dbpKeYme

16

Had a great time last evening meeting the quant community in India at Bloomberg office for the inaugural event for Lambda Quantitative Strategies Association (LAQSA) The event was an absolute standout! It was inspiring to witness so many prominent quant teams being set up across different AMCs and even more exciting to see the bullish sentiment around quant strategies taking shape in India. A big shoutout to Rishi Kohli and Pankaj Mani(Jha) for putting together this amazing event and Vanshika Kumar for being an amazing host! 🙌 I met so many amazing fellow panelists - Bhautik Ambani, Bijon Pani, Ph.D., Chetan Mehra PhD, Gaurik Shah, CFA, Nalin Moniz, Siddharth Vora. Also had the privilege of joining a panel with Nalin —my first boss at Edelweiss —who's been working on quant strategies for longer period than most people run their backtests. It was a full-circle moment for me and a great opportunity to reflect on the evolution of quant investing in India. The key takeaways from the event: ✳️ More education and training opportunities for quant finance enthusiasts. ✳️Frequent meetups & discussions to fuel innovation and collaboration. ✳️A push for regulatory support to help quant strategies thrive. It was also incredible to meet so many leaders pushing the quant agenda in India. 💬 Some exceptional discussions happened, and the networking was just as impactful. Looking forward to being a part of the next chapter in India’s quant journey. 🚀 #QuantFinance #LAQSA #InvestmentInnovation #Networking #India #QuantitativeStrategies #Finance

206

6 Comments

5/15/2024, Plainfield, NJ The War Below: Lithium, Copper, and the Global Battle to Power Our Lives by Ernest Scheyder #Ernest_Scheyder https://lnkd.in/eR-5473b Hardcover – January 30, 2024, Atria/One Signal Publishers, 384 pages, $30.00 https://lnkd.in/ei4n7GCP "The War Below: Lithium, Copper, and the Global Battle to Power Our Lives" by Ernest Scheyder is a thought-provoking exploration of the complex challenges surrounding the mining of critical minerals essential for the transition to green energy. Scheyder, a seasoned journalist, takes readers on a captivating journey through the frontlines of this modern-day resource war, unveiling the intricate web of competing interests and the profound consequences at stake. 1. The Delicate Balance At the heart of Scheyder's narrative lies a fundamental dilemma: the urgent need to secure the minerals that power our technological advancements and drive the shift towards sustainability, while simultaneously grappling with the environmental and social costs associated with mining operations. Through vivid storytelling and meticulous research, he illuminates the delicate balance between preserving fragile ecosystems, respecting indigenous rights, and meeting the ever-growing demand for lithium, copper, and other vital resources. 2. Voices from the Frontlines One of the book's greatest strengths lies in Scheyder's ability to give voice to the diverse array of stakeholders embroiled in this conflict. From industry titans and policymakers to conservationists and local communities, each perspective is presented with nuance and empathy, allowing readers to grasp the complexities of the issues at hand. 3. A Cautionary Tale While acknowledging the necessity of mining for the energy transition, Scheyder does not shy away from exposing the harsh realities and potential pitfalls. He skillfully weaves cautionary tales of environmental degradation, human rights violations, and the geopolitical tensions fueled by the race for resource dominance, particularly between the United States and China. 4. A Call for Collective Action Ultimately, "The War Below" serves as a clarion call for collective action and responsible stewardship. Scheyder challenges readers to confront the difficult choices that lie ahead and to seek innovative solutions that balance economic progress with environmental preservation and social justice.His work underscores the urgency of addressing these issues head-on, lest we risk perpetuating a cycle of exploitation and conflict in our pursuit of a sustainable future. In a world grappling with the existential threat of climate change and the insatiable demand for technological advancement, "The War Below" is a timely and essential read. #The_War_Below #Atria #One_Signal_Publishers #PlainfieldNJ Watch Viedo A Discussion with Ernest Scheyder About His New Book, The War Below https://lnkd.in/exM2UUU4

5

Grandpa Buffet has fried the brains of many finance professionals regarding the topic of leverage. When I explain my use of leverage, the common skeptical question is what if the market has bad returns? This answer is much less sarcastic than my typical one: "The important implication here is that if we believe the levered portfolio is unattractive to invest in, it must also mean we believe the unlevered portfolio is unattractive to invest in.1 If 60% ERP + 40% BRP is negative, no amount of scaling up or down will change it; we’d be better off just holding cash. " #stocks #leverage #investing #business #tothemooon!

6

=> The U.S. labor market report produced a knee-jerk reaction among major FX – but MXN, COP, BRL, and ZAR are bucking the trend => MXN clearly likes the idea of a stronger growth in the U.S. Further, President Sheinbaum continues to send orthodox policy signals (including the post-election fiscal adjustment), and there is now a possibility that parts of controversial judicial reform might be revised => BRL/COP/ZAR’s outperformance is even more interesting – Domestic factors still getting noticed? (chart’s source - Bloomberg LP)

13

A couple of (hopefully useful) thoughts from my presentation at QuantMinds on the potential of structural corporate liabilities pricing framework to bridge some gaps in factor investing. #QuantMinds #StructuralFactorInvesting https://lnkd.in/esK4GBWM

139

5 Comments

Where does the Polen Capital team see opportunities in generative AI? Watch Dan Davidowitz break down his view on cloud service providers and where he sees potential for repeatable, recurring revenue. https://lnkd.in/egvgY6K5

30

Howard Lutnick CEO Cantor Fitzgerald Lands Wall Street Giants for His Futures Fight With CME “CME is one of the great monopolies of America” “While they provide a great service and a great product, they charge an equally spectacular price” fresh challenge to the behemoth of futures trading and interest-rate derivatives, CME Group : FMX gets backing from JPMorgan, BofA, Citadel Securities : CME dominates sector with interest-rate, commodities offerings : prepares to launch his new futures exchange : For years, the sector has been dominated by Chicago-based CME, which runs futures markets for commodities including wheat and biofuels : CME handled more than 99% of trading volume in interest-rate futures on US exchanges in 2023 “The CME is the heavyweight champ, there’s no doubt. They say bring it on” “We’re getting good shots in on the champ” CME is the giant in the sector, with a market capitalization of roughly $77 billion, while BGC’s is $3.99 billion. FMX’s cash US treasury platform, FMX UST, ended the first quarter with a market share of 28%, up from 26% in the previous three months : Clearinghouse Deal struck a deal to clear FMX’s futures trades through LCH, the clearinghouse owned by London Stock Exchange Group Plc. As one of the largest clearinghouses in the world

1

Hedge Fund Memories: The Factor Reversal In the middle of a particularly violent factor unwind around [2014], several pods at my firm blew up and my team absorbed a 9 figure PNL reversal. The pain was endless and the quants seem to take special pleasure reciting all these "greek" stats on what was going on. The bigger PMs talked a lot about making sure you were "dollar neutral," in addition to being "factor neutral" because these were times when the model would break down..it was all about the cascade of liquidations at this point. The rumors weren't just that "a pod blew up" but rather that "entire pod shops were blowing up and de-grossing. " Most equity pods are 6-8x levered across everyone...just cutting gross down by two turns has a massive impact on the market...especially in the low volume summer. During this period, there were ample water cooler discussions on what to do in the darkest scenario: the low volume squeeze of a short. Harder to exit, most decided to simply ride the pain and add offsetting longs in other highly shorted names to minimize their factor exposure. The decision to increase gross in the face of a factor pain is usually the path to certain death. Why? As underlying vol increases at the book level, you expand your dollar vol geometrically. As most pod PM risk management decisions go, if you decide to offset shorts with longing high SI, you have to take down something else...which only increases the pain. If adding gross, you set yourself up for the worst of fates...the "echo" death. "Echo" deaths are the pods that live through the pain, only to die when things revert back to normal. Essentially they saved themselves by going long the transient "unwind" factor and then blow up later. If we have another day tomorrow, similar to today, the pain will be far higher. Today, a lot of people are "taking the pain" and hoping "this" doesn't continue. Perhaps the scariest thing about unwinds was the comment a senior executive shared when asked about when this unwind would end: "If we knew that, do you think we would tell you? That's the holy [quant] grail!" Be safe all... #hedgefund #privateequity #familyoffice

8

The Institutional Investor Research Survey has become an industry benchmark. This year for the first time, Al Ramz Capital is listed as a research contributor, which is a rewarding payoff for our steady efforts to bring more market intelligence to our stakeholders. Your voice is important, whoever you decide to vote for. Don't be shy and cast your vote (link below)!

12