Inside the Secret World of Prop Traders | Noel Smith of Convex Asset Management

Inside the Secret World of Prop Traders | Noel Smith of Convex Asset Management

Noel Smith, founder of Convex Asset Management has spent most of his career outside of the world of managing other people’s money. Instead, he traded his own capital as a proprietary trader. Prop traders are famed for generating staggering rates of return, but because they have no interest in raising money, their secrets and strategies generally remain behind closed doors. However, he has decided to bring these strategies to the hedge fund world at Convex Asset Management and while they don’t scale to produce the same level of returns their lack of availability outside the prop world gives him differentiation in the product marketplace. In this interview, Smith explains why props can make so much more money, how much harder capital raising is than he anticipated, and why he ranks relationships and likability higher than performance when it comes to hedge fund success. Follow Other People’s Money on: Apple Podcast https://bit.ly/4e7QJ1M Spotify https://bit.ly/3Yhaazi YouTube https://bit.ly/3C63VXR Follow Noel Smith on Twitter: https://x.com/NoelConvex Follow Max Wiethe on Twitter: https://x.com/maxwiethe Timestamps: 00:00 Intro 01:16 What is Prop Trading? 10:51 Moving to the Hedge Fund World 16:36 The Hedge Fund Popularity Contest 23:04 Volatility Trading Strategies 27:27 Extracting Information From The Options Market 32:09 Scaling Prop Strategies 34:44 Alpha Degradation 39:31 Being Good Is Not Enough 48:03 Dealing With Extreme Performance 53:28 Long-term Vision For Convex Asset Management

Episoder(244)

Tariffs Unlikely To Derail Strong Economy—But Market Risk Has Risen | Prometheus Macro’s Aahan Menon

Tariffs Unlikely To Derail Strong Economy—But Market Risk Has Risen | Prometheus Macro’s Aahan Menon

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The Liquidity Squeeze | Michael Howell On Funding Pressures, China’s Gold Yuan Devaluation, and Trump Admin’s Tariff Endgame

The Liquidity Squeeze | Michael Howell On Funding Pressures, China’s Gold Yuan Devaluation, and Trump Admin’s Tariff Endgame

This Monetary Matters episode is brought to you by VanEck. Learn more about VanEck Uranium & Nuclear ETF: http://vaneck.com/NLRJack Michael Howell of Crossborder Capital returns to Monetary Matters ...

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The Specialist Hedge Fund That Has Crushed the S&P 500 | Moez Kassam of Anson Funds

The Specialist Hedge Fund That Has Crushed the S&P 500 | Moez Kassam of Anson Funds

This episode is brought to you by Fintool. Learn more about how you can add AI to your investment process with Fintool: https://fintool.com/?utm_source=the_opm Toronto may be the financial capital of...

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The “Biblical” Rotation Out Of U.S. Stocks | Julian Brigden on Flight from Dollar Assets, Tariffs, and Rumored “Mar-a-Lago Accord”

The “Biblical” Rotation Out Of U.S. Stocks | Julian Brigden on Flight from Dollar Assets, Tariffs, and Rumored “Mar-a-Lago Accord”

This Monetary Matters episode is brought to you by VanEck. Learn more about VanEck Uranium & Nuclear ETF: http://vaneck.com/NLRJack During most stock market sell-offs, the dollar tends to rise. Juli...

9 Mar 20251h 9min

The Stock Market Blues | Jack Farley & Max Wiethe on Tariff Uncertainty & Jobs Market Data

The Stock Market Blues | Jack Farley & Max Wiethe on Tariff Uncertainty & Jobs Market Data

With a week of tough declines in U.S. stocks and the U.S. dollar, Jack welcomes business partner and host of “Other People’s Money” show Max Wiethe to talk the uncertainty that is driving markets lowe...

8 Mar 202549min

How Tariffs Jeopardize The Soft Landing | Jonny Matthews, former Brevan Partner, on Bond Yields, Japanese Yen, and Gold

How Tariffs Jeopardize The Soft Landing | Jonny Matthews, former Brevan Partner, on Bond Yields, Japanese Yen, and Gold

This Monetary Matters episode is brought to you by VanEck. Learn more about VanEck Uranium & Nuclear ETF: http://vaneck.com/NLRJack Recorded on March 4, 2025. Follow VanEck on Twitter https://x.com...

5 Mar 20251h 11min

Economic Playbook For Trump 2.0 | Eric Wallerstein on Tariffs, DOGE, Jobs Numbers, and Global Trade War Tail Risk

Economic Playbook For Trump 2.0 | Eric Wallerstein on Tariffs, DOGE, Jobs Numbers, and Global Trade War Tail Risk

Eric Wallerstein, Chief Markets Strategist for Yardeni Research, joins Jack to share his optimist outlook on the U.S. economy. Recorded on February 27, 2025. Follow Eric Wallerstein on Twitter https:...

2 Mar 20251h 27min

Inside the Alternative Investment Platform Megatrend | Alan Strauss of Crystal Capital Partners

Inside the Alternative Investment Platform Megatrend | Alan Strauss of Crystal Capital Partners

Whether you are talking about hedge funds, private equity, private credit, or venture capital, alternative investment strategies are becoming a much larger part of the portfolios of individual investo...

27 Feb 202554min

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