Stock Market Stories
003: Chris DeMuth Jr. - Finding Mispriced Bets Amid the COVID-19 Crisis, How to “Sift the World”

003: Chris DeMuth Jr. - Finding Mispriced Bets Amid the COVID-19 Crisis, How to “Sift the World”

March 28, 2020

Hey all, it’s been a while since I’ve posted a podcast, but I do intend to start publishing interviews on a more regular schedule. Not quite sure what that will look like yet (thinking of starting with biweekly and seeing where that goes).

Today I have a real treat. I was able to get Chris DeMuth Jr. of Rangeley Capital on the show for a brief half-hour interview about how he’s approaching markets amid this COVID-19 crisis.

Chris is a partner at New Canaan, CT hedge fund Rangeley Capital, where he primarily invests in event-driven, value-oriented opportunities. He also hosts a SeekingAlpha Marketplace community called Sifting the World, where he publishes research on “mispriced bets,” with a skew towards value investing. Some examples include odd-lot going-private transactions, merger arbitrage, funds trading at discounts to NAV, etc.

I asked Chris about how he’s finding opportunities among the massive volatility in the March 2020 financial markets, as well as how to “sift the world,” in a general sense, within and without the markets.

 

Links Mentioned:

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Episode 002: Logan Kane - Becoming a Quant, Econometrics, and Inversing Retail Investors

Episode 002: Logan Kane - Becoming a Quant, Econometrics, and Inversing Retail Investors

October 31, 2019

My second guest is Logan Kane, author of High Finance: The Secrets Wall Street Doesn't Want You To Know and frequent SeekingAlpha contributor. Logan is a quant, applying econometric models to financial markets.

I originally came across Logan when he broke a story on Robinhood's payment for order flow practices, which was picked up by Bloomberg and CNBC.

In this episode, we talk about:

  • Starting as a bottom up value investor and becoming a quantitative investor
  • How to start modelling market behavior
  • Practical things retail traders and investors should know about market microstructure
  • Logan's Robinhood story
  • Thinking about time frames in trading
  • How his strategy is based on inversing retail investor behavior

Links mentioned:

001 - Peter To: Practical Trader Improvement Exercises, The HFT Boogeyman, and Prop War Stories

001 - Peter To: Practical Trader Improvement Exercises, The HFT Boogeyman, and Prop War Stories

October 23, 2019

 

My first guest is ex-proprietary day trader Peter To, who now trades independently. I first found Peter through the Chat With Traders podcast and his amazing blog which can be found at ptotrading.blogspot.com.

 

In this podcast we talk about:

 

  • A recent study which asserts that consistent day trading profits are near-impossible.
  • Trading with "the world's worst prop firm" during Hurricane Sandy
  • Peter's thoughts on high-frequency trading's affect on the markets he trades
  • Why 1990s prop trading was the golden era of trading.
  • How traders can develop techniques outside of 'vanilla' technical trading strategies
  • Is shorting parabolic penny stocks a 'crowded trade?'
  • Modelling market behavior to refine your trading edge
  • How Twitter has become a digital prop desk
  • Updates on two trades Peter has blogged about

 

Links mentioned:

 

 
Investment disclaimer

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