Blitz: Repeatable Macro Alpha Comes From Trade Structuring, Not Thematic Bets
Adam Blitz · Hedge Fund Master Class – Craig Bergstrom, Adam Blitz, and Dan Fagan (Capital Allocators, EP.318) · May 29, 2023 · at 56:23
Adam Blitz (CIO of Evanston Capital Management) discusses hedge fund selection and why execution mechanics matter more than macroeconomic forecasting.
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“So the thing that we think is repeatable is having an edge in trade structuring and implementation. So basically instead of saying, I'm going to put all my eggs in the Euro basket or put all my eggs in the basket of the tenures going up, sort of view things through a probabilistic Lens and say, you know what, I think that there's a 80% chance of this outcome, and the market's going to move like this, and a 20% chance of that outcome, and the market's going to move like that, and try to structure a trade maybe through options, or something that kind of reflects that probabilistic view, and see, you know, are there parts of the market that are mispriced, whether it's the cash market, like the euro, or the bonds, or the options related to those instruments. So that to us is more of a repeatable, sustainable edge. It offers more opportunity than trying to make one big bet and hopefully get it right.”
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