Popular Delusions, the Cockroach Portfolio, & the End of Duration
Today’s guest is Dylan Grice, co-founder of Calderwood Capital, a hedge fund boutique specializing in orthogonal, niche and capacity-constrained hedge-fund strategies. He’s also the author of Popular Delusions, one of my favorite financial newsletters.
In today’s episode, we kick it off by talking about the end of duration and the headwinds that long-duration assets like stocks, bonds, private equity and real estate face going forward.
That leads us to talk about why Dylan loves the idea of the cockroach portfolio and what a creature that’s survived over 350 years can teach us about portfolio construction.
As we wind down, we talk about some esoteric strategies, including mortgage prepayments, cat bonds, uranium and energy (both of which he wrote about a few years ago) and even SPACs.
Dylan was kind enough to share a few of his letters from Popular Delusions, so be sure to check the show notes above for the link.
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