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Published Apr 6, 2020

Eric Peters – Trading and Evolution at One River (First Meeting, EP.18)

Eric Peters, founder of One River Asset Management, delves into his evolution from a novice trader to a seasoned investor, offering deep insights into market dynamics, innovative strategies, and the intertwining of personal growth with professional prowess, crucial for navigating today's economic challenges.
Episode Highlights
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Episode Highlights

  • Volatility

    One River Asset Management employs sophisticated volatility strategies to navigate market uncertainties. explains their approach, highlighting a dedicated long volatility fund that identifies global asset volatility opportunities. This fund, alongside a systematic long volatility fund called Dynamic Convexity, aims to provide a thoughtfully constructed convexity solution for investors 1.

    We have a dedicated long volatility fund. It's a discretionary fund that looks across asset volatility globally and looks for what we think are the best opportunities.

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    Additionally, One River's relative value volatility funds have excelled in protecting capital, demonstrating the importance of avoiding high-risk bets that could lead to significant losses 2.

       

    Thematic

    Thematic investment strategies at One River are designed to capitalize on macroeconomic trends. shares examples like the Japanese reflation and Dutch disease themes, which focus on significant economic shifts and their impacts on global markets 3. These strategies are rolled into traditional commingled funds to provide enduring portfolio building blocks for clients.

    We think of the world thematically, and then to the extent we can take things that we do and lessons that we've learned on a discretionary basis and codify them.

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    Peters also predicts a shift in investor portfolios towards less leverage and complexity, driven by the need for resilience in the face of economic challenges 4.

       

    Risk Mgmt

    Risk management is a cornerstone of One River's investment philosophy. emphasizes the use of embedded stop losses and thoughtful risk mitigation strategies to protect against market reversals 5. This approach allows them to exit positions before significant losses occur, ensuring the firm's longevity and investor trust.

    We have embedded stop losses within everything that we do, and that gets us out of the way.

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    Their trend trading strategy, which applies common sense and focuses on long-term trends, further exemplifies their commitment to understanding why they are compensated for certain trades 6.

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