High Frequency Trading and Systematic Macro Funds with Matthew Hanna of Teza Technology

There are not a lot of Florida Gator fans in Utah, just like there are few firms that move from high-frequency trading (HFT) into the mutual fund space. That's why Matthew Hanna from Teza Capital Management is here to talk us through what it is like running a systematic macro mutual fund. He reviews Teza's HFT and prop trading roots, how Teza’s algorithms approach the market, all while mixing his love for UF sports into the conversation. We also flip the script and ask the lead PM of the Catalyst/ Teza Algorithmic Allocation Fund (TEZAX) to dig deeper by covering some off-colored topics that viewers want to know more about, like the decision to pivot away from HFTs, why the Catalyst TEZA Algorithmic Allocation Fund essentially went flat for the first seven months of 2021, and how is Teza’s strategy doing now? Plus, we put Matt in the hot seat to provide his perspective on topics that nobody is talking about, or everyone is wrongly talking about. Highlights and topics from this episode include: How to determine what volatility is on a forward-looking basis and where risk models come into play The algorithmic allocation and breaking down the equity bucket Why absolute return in the alternative mutual fund space means low volatility and low return Why you need to adapt if stocks and bonds are down together over the next 16 months A closer look into the reality of why your model will work better sometimes than other times and the importance of allowing your volatility to float. Plus, more! Chapters:  00:00-01:42 = Intro 01:43-10:19 = Tim Tebow, Gator Sports, & Lawyer turned Quant PM 10:20-18:26 = High-Frequency Trading 18:27-34:36= The Algorithmic Allocation & Breaking down the Equity bucket 34:37-58:28= Multi-Model Methodology Approach / It's All About the Data 58:29-01:04:26= Hottest Take - NFL Hiring practices Don't forget to subscribe to The Derivative, and follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2, or LinkedIn , and Facebook, and sign-up for our blog digest. Disclaimer: This podcast is provided for informational purposes only and should not be relied upon as legal, business, or tax advice. All opinions expressed by podcast participants are solely their own opinions and do not necessarily reflect the opinions of RCM Alternatives, their affiliates, or companies featured. Due to industry regulations, participants on this podcast are instructed not to make specific trade recommendations, nor reference past or potential profits. And listeners are reminded that managed futures, commodity trading, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. For more information, visit www.rcmalternatives.com/disclaimer