Asterozoa Capital

History doesn’t repeat itself, but it often rhymes.. Some interesting parallels: -rising inflation due to expansive fiscal policies in the early 70s and high government spending related to Vietnam War and Great Society programs. -facing political pressure, Burns quickly reduced rates after a hiking cycle and prematurely declared “mission accomplished” on inflation. -Bill Miller, facing stagflation, was reluctant to hike aggressively to quell inflation and prioritized employment over tackling price control. -President Carter removed Miller and installed Volcker in August of 1979. Personally, I can’t think of a bigger wild card right now than what fiscal policy will look like in 2025 (and the subsequent Fed response to it). With equity markets at all time highs and credit spreads near all time lows, it might be a good time to ring the register on passive or long-only products and consider hedged, minimally correlated return streams. (Not financial advice) #rates #markets #Fed #monetarypolicy #credit #fixedincome #stocks #activeETFs

This is a major question for allocators. We’ve been able to enjoy 5%+ money markets for some time and cash piles have grown large. As TBill yields come down, where should that cash be redeployed? Into equities at all time highs? Passive credit with spreads near all time lows? Consider hedged income in liquid alternative credit. Asterozoa Capital & Simplify have some compelling alternatives. #activeETFs #hedgefund #credit #income #rates

Joe Hegener Krisna Patel, CFA and I had an #activemanagement #fixedincome discussion with 250+ advisors yesterday. The VettaFi hosted webcast was well received and showcased a volatility minimizing strategy. Gratitude to Brian Kelleher Paul Kim, CFA and the Simplify #ETF team and Asterozoa Capital for the partnership. Abby Taylor https://lnkd.in/e7RnfRhf

Amidst the backdrop of falling cash yields, investors will need to look for new sources of minimally correlated income. This Wednesday Todd Rosenbluth, Krisna Patel, CFA and I will discuss liquid alternative credit and its role in portfolio construction. Register here to listen in: https://lnkd.in/dT556bCq #credit #alternatives #ActiveETFs #fixedincome #income

Can you drive alpha through credit? Join Asterozoa Capital’s lead portfolio manager Joe Hegener and Simplify’s Krisna Patel, CFA to explore the macro drivers and opportunities in credit through the lens of a hedge fund manager. Fixed income is boring no more. Hosted by VettaFi. Register here: bit.ly/3WueJWj

Joe's predictions on the yield would make a huge difference for real estate in the next 12-18 months. We elaborated on this impact in our chat earlier this month. https://lnkd.in/gCwTBiVA #MultifamilyRealEstate #MultifamilyInvesting #InterestRates #FedRates #Inflation #EconomicUpdate #InterestRates2024 #RealEstateNews

Can you drive alpha through credit? Join Asterozoa Capital’s lead portfolio manager Joe Hegener and Simplify’s Krisna Patel, CFA to explore the macro drivers and opportunities in credit through the lens of a hedge fund manager. Fixed income is boring no more. Register here: https://bit.ly/3WueJWj

We think in ~12-18mo the yield curve could very well look something like how it did in 2001. The green line is where we sit today, and the red line shows a "normal" yield curve with term premium. Note the 2yr is 3% and the 10yr is ~5%. Extending duration has been a popular model tweak going into this rate cut cycle. By extending, you may actually be moving away from the driver of positive performance (front end) and into the teeth of duration-based losses (long end). Reach out to Simplify or Asterozoa Capital if you'd like to be added to our email commentary. #duration #bonds #activefixedincome #activeETF #yieldcurve

Thanks for having me on, Kevin Brinkman. We’re at an inflection point as it relates to fiscal and monetary policy. Was great to chat about our approach to macro and scenario analysis at Asterozoa Capital.

Don’t miss tomorrow’s deep dive into the Simplify Opportunistic Income ETF (CRDT) methodology, positioning, and opportunities with Joe Hegener of Asterozoa Capital and Simplify’s Krisna Patel, CFA. Register here: https://bit.ly/4aG3EqH