Stock Market Stories

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: BWIC (bids wanted in competition process) – Chris says one of his favorite investing processes in 2008 was BWIC, which involved getting calls from portfolio managers or broker-dealers looking to sell a basket of securities. If you were a bit confused by the process like I was, here’s some links where you can get more insight: Investopedia Matt Levine’s Money Stuff talks about BWIC Chris DeMuth Jr. on SeekingAlpha Chris DeMuth Jr. on the SeekingAlpha Marketplace Roundtable Podcast Chris DeMuth Jr. and Rangeley portfolio manager Andrew Walker interviewed during the Hedgeye Investing Summit Chris DeMuth Jr. interviewed on the MicroCap Investing podcast If you like the podcast, please consider leaving a review on Apple Podcasts, or wherever you listen to podcasts. Also, please subscribe to the podcast on your preferred provider, whether that’s YouTube, Apple Podcasts, Spotify, Podbean, etc. If you’d like to be notified via email when I release new shows, please sign up for the newsletter here. If you’d like to email me to suggest I try to get a specific guest on the show, give me tips on my audio, or any reasons, you can reach out to me at stockmarketstories@gmail.com. Please keep in mind that all material published or distributed by Stock Market Stories and related entities is subject to our investment disclaimer. Financial markets carry a high level of risk, and you can lose your entire investment. No securities mentioned are a recommendation to buy or sell.

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: High Finance: The Secrets Wall Street Doesn't Want You to Know Logan's SeekingAlpha page Robinhood Is Making Millions Selling Out Their Millennial Customers To High-Frequency Traders The Robinhood High-Frequency Trading Scandal: The Plot Thickens What Time Frame Should You Use When Trading Card Counting Meets The Stock Market: A Statistical Model For Predicting 1-3 Month Returns How Hidden ETF Transaction Costs Make Billions For Market Makers How Option Pricing Theory Can Make You Extra Money In Cannabis Stocks And IPOs Read This If You're Thinking Of Buying Put Options On Tilray An Overlooked Key To Investing Success: Market Microstructure

  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:   Day Trading for a Living Study? Peter's blog Peter's twitter Peter's CETC Trade: Being stuck short a stock and still being charge borrow fees Peter's great post on why he thought buying the dip in the S&P in December 2018 was a home-run trade Peter's interview with Chat With Traders Peter's favorite trading book: Dark Pools - The Rise of Machine Traders and the Rigging of the US Stock Market  Investment disclaimer