Ep. 90: Nancy Davis on How to Position for True Inflation Risk

Nancy Davis is the founder and managing partner of Quadratic Capital Management. She is the portfolio manager for The Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL). She founded Quadratic Capital in 2013. She began her career at Goldman Sachs where she spent nearly ten years, the last seven with the proprietary trading group where she rose to become the Head of Credit, Derivatives and OTC Trading. Prior to starting Quadratic, she served as a portfolio manager at Highbridge Capital Management where she managed $500 million of capital in a derivatives only portfolio. She later served in a senior executive role at AllianceBernstein. In this podcast we discuss: 

1. Why ETFs are attractive wrappers for active strategies 
2. How best to capture true inflation risk 
3. The pros and cons of investing in TIPs 
4. How to think about spread exposure 
5. Taking advantage of the shape of forward curve to fund option premium 
6. How the IVOL strategy performed during COVID 
7. Are real yields too low? 
8. Risks for 2022 including stagflation 

You can learn more about Nancy’s investment approach and the IVOL strategy here. 

Read the transcript for this podcast.

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(The commentary contained in the above article does not constitute an offer or a solicitation, or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.)