Jonathan Glidden - Saving Delta's Pension with Portable Alpha

Bullish:

• $PORTABLEALPHA - Delta's portable alpha strategy aims for 120-160 basis points of alpha from their portfolio, with a diversified approach including hedge funds and careful cash management.

  • “We want about 120 to 160 basis points of alpha just coming from our portable alpha portfolio.”

    Jonathan·9:52

  • “We tend to have about 40 hedge funds, give or take at any time. We tend to limit our strategy exposure to, you know, something like, you know, call it 25% or so.”

    Jonathan·35:19

  • “We use we kinda use a philosophy. We're willing to take a 50 basis point hit in the worst, scenario imaginable. And so that can lead you to things like US Treasury cash and carry, where we think we could probably get out”

    Jonathan·1:05:39
• $TREASURIES - US Treasury cash and carry is preferred for cash management in portable alpha strategies, offering a safer alternative to commercial paper.

  • “We use we kinda use a philosophy. We're willing to take a 50 basis point hit in the worst, scenario imaginable. And so that can lead you to things like US Treasury cash and carry, where we think we could probably get out”

    Jonathan·1:05:39

Bearish:

• $COMMPAPER - Avoid using commercial paper for enhanced cash management in portable alpha strategies due to potential risks.

  • “If you're going to mess around with enhanced cash, don't do commercial paper. We use we kinda use a philosophy. We're willing to take a 50 basis point hit in the worst, scenario imaginable.”

    Jonathan·1:05:39