Author: Greg Taunt

As IASG Vice President, Greg Taunt helps clients navigate the futures industry and find the best managers for their risk tolerance and portfolio needs. He specializes in maximizing portfolio effectiveness to potentially reduce risk while increasing returns through the use of managed accounts in non-correlated vehicles. Previously, Greg served as Midwest Regional Wholesaler for Superfund Asset Management, a $2 billion trend-following CTA working with brokers and registered investment advisors. Before that, he worked in the insurance industry, providing risk management solutions to financial institutions in the Midwest. Greg holds a B.A. in finance from Michigan State University and an MBA from Northwestern University’s Kellogg School of Management. He is licensed as a Series 3 Commodity Broker, a Series 34 Forex Broker, and a Series 7, Series 24, and Series 63 Securities Broker.
  • Options Made Simple

    | | Managed Futures Education

    For any profession, once you have done it for a while, some concepts become second nature to the point that you forget that not everyone (or very few) understands them at even a basic level.  I find that options are the concept that confuses people the most and one that is perhaps most valuable to understand.  The futures industry uses these instruments in a variety of ways that you can apply to your own portfolio as well. At their most basic level options convey the right to buy or sell or a specific price.  If you purchase a call, you … Read more Options Made Simple
  • Who is Driving the Bus?

    | | Markets

    Nobody likes paying for insurance.  It is intangible as you pay up front for an unknown risk that may or may not materialize.  Many of us feel that we overpay, until we really need it.  It is perhaps not surprising then that many investors spend little effort protecting against sudden and unexpected drops in the market.  After all, it is much like insurance.  Intuitively you may know you need it but premiums can be tough to pay no matter what.  But if we insure our vehicles, which represent a small part of our wealth, why wouldn’t we spend even more … Read more Who is Driving the Bus?
  • Call me a Pessimist

    | | Economy

    All investors know the adage to “buy high and sell low” but few adhere to it.  We can see this with record volume to start July trading coming mostly from retail investors as the S&P reaches another all time high.  Perhaps I have been in the futures industry too long because when things are “too good” I get concerned.  Oftentimes I am right though, even for accidental reasons.   Oddly, the current period looks pretty similar to a time of recent memory.  Coming into February of 2020 the economy was on fire with record low unemployment, a rising stock market, and … Read more Call me a Pessimist
  • Hedging an equity portfolio: Volatility

    | | Strategy

    We opined in our last article that “Traditional Hedges Suck” that most traditional hedges had significant weaknesses and did not have many characteristics of a great hedge.  Volatility (long positions in VIX futures), while not perfect, has a number of these favorable characteristics for hedging an equity portfolio. The characteristics of a great equity hedge are three-fold: Makes more money in down markets that it loses in up markets; therefore, the hedge improves the risk adjusted returns of the portfolio. If the risk adjusted return is improved, the investor can either have less risk on the same investment size OR … Read more Hedging an equity portfolio: Volatility
  • A Better SPY?

    | | Investment Strategies

    Index investing is all the rage now with over a trillion dollars invested in the SPY and VOO ETFs alone.  The expectation is that low fees coupled with broad market exposure is better for your portfolio than an actively managed strategy with higher fees. One could argue that as the components of the indices attract more of the capital flow that these names really do drive the market and even a “diversified portfolio” often correlates highly to a simple index. I believe strongly that everyone should have some equity exposure but is there a better way to do it? Futures … Read more A Better SPY?