In today’s episode, we are joined by Portfolio Manager David Way, to discuss alternative strategies for the long and short fund in the third quarter. David provides insights for the growing interests in alternative investments, and the strategies to follow to help smooth out volatility in the current market. David begins by highlighting why alternatives are increasingly seen as a way to manage volatility. He talks about the opportunities available to enhance and generate returns on both the long and short funds. He emphasizes that given the current political volatility and market concentration, these strategies are proving valuable. When asked about the themes driving his stock picks and whether the AI story has been overplayed, David acknowledges that AI has led to a significant price appreciation within major companies. However, he also notes that there are companies facing existential risks from AI, and goes into the impacts it has on user metrics and revenue generation. He then talks about other relevant topics such as how the current rates environment is impacting his thesis, the performance of alpha in his short portfolio, and other risks involved in his long and short strategies. David then concludes with his thoughts on where we are in the market cycle, providing a broader perspective on how to navigate the current economic landscape.
Recorded on July 4, 2024.
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