TTU50: Why Optimism is Important ft. Dave Sanderson of KFL Capital Management – 2of2

Welcome to Part 2 of our conversation with Dave Sanderson. In this episode we explore his trading program in detail, from the markets the firm trades to how they describe their program to investors. We also explore the challenges that he goes through as a business leader, dealing with drawdowns, and why optimism is so important to Dave.

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In This Episode, You’ll Learn:

• Why Dave believes that QIM is a unique firm in a reasonably similar category as KFL Capital Management.
• How to describe Krystal to investors and why it can be a challenge.
• About the length of time it takes for Krystal to compute the data and make a decision.Why the breakthroughs in computational power are supporting KFL Capital Management to make their systems faster each year.
• The markets KFL trades.
• Expected drawdown and volatility Krystal expects.
• How Dave expects to deal with drawdown environments.
• Research cycles within KFL Capital Management and the potential for a second Krystal.
• About the 99.3% match rate between their live trading and back testing results.
• The biggest challenge for KFL Capital Management in today’s market.
• About the challenge of attracting AUM in the modern financial landscape.
• Asymmetry of agency and understanding how to focus on who you’re talking to.
• Regarding the difficulties of explaining machine learning and big data ideas.
• Commonalities in the highest level due diligence explorers.
• Entrepreneurial perspective, great books and an open minded perspective on failures.
• Why optimism is such a powerful force in today’s world.

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Resources & Links Mentioned in this Episode:

• The Medallion Fund – Jim Simon’s Fund.
• The Innovators by Water Isaacson.
• Zero to One by Peter Thiel.

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