We sample overnight's volatility and liquidity, and we sample the previous days volatility and liquidity.

And essentially that is what goes into our model.

And it has this incredible ability to give us a probability of where the market is going to go.

Welcome back to Top Traders Unplugged, where the best traders in the world come to share

their experiences, their successes, and their failures.

Before we begin today's conversation, remember to keep two things in mind.

All the discussion we'll have about investment performance is about the past,

and past performance does not guarantee or even infer anything about future performance. Also understand

that there's a significant risk of financial loss with all investment strategies, and you need to

request and understand the specific risks from the investment manager about their product

before you make investment decisions.

Now let's rejoin the conversation with your host, veteran hedge fund manager, Neil Kastra Blanderson.

Welcome back to Top Taders on Block, where I continue my conversation with Alan Sheen, the founder and chief investment officer at Dalton Street Capital, a global systematic investment and research company based in Sydney, Australia. I want to dig obviously a lot deeper into your strategies and I think the best place maybe to

begin is with the absolute return strategy since this is something you, you know, had been

running before, I guess, Dalton Street. So can you go back and tell us about how this came about and kind of what the strategy is trying

to capture?

So the strategy purely is the one that I mentioned before.

I originally, this is my very first managed future strategy that I designed.

I didn't know it was a managed future strategy at the time.

And it was originally designed to hedge a basket of, and this sounds unusual now I repeat it, but this was the

desire at the time, was to hedge a basket of Australian equities over the trading day in Australia.

And obviously at the time, the asset owner that I was working for had a particular view, didn't want to sell down their equity holding, just wanted to protect it during the day.

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