When Macro Meets the Kentucky Derby
Jordi Visser, president and chief investment officer of Weiss Multi-Strategy Advisers, joins Teddy Vallee, founder and chief investment officer of Pervalle Global, for a wide-ranging discussion on the greatest opportunities that lie in the macro world of currencies and interest rates. Visser shares his framework for using economic data such as Purchasing Managers’ Indexes (PMIs) to generate trade ideas and spot potential dislocations within asset prices. Visser also provides his quantitative analysis for the odds of the Kentucky Derby, which occurs on May 1, the day after this interview airs, and offers examples of how this probabilistic style of thinking is very useful in the investment world as well. Key learnings: Visser agrees with the consensus that bond yields are headed higher, but argues that going long commodities such as oil is probably the best way to express this view. Visser is very bullish on the Brazilian Real and thinks the dollar is likely going lower. For Kentucky Derby picks, Visser’s selection is Rock Your World (5-1), and he also sees asymmetric potential in Midnight Bourbon (20-1).