Long Gamma. Short Beta.

Need for Guiding Principles      In any stochastic domain, we frequently ascribe causality and see patterns when there are none present. Our evolutionary need to weave a series of events in a coherent, intelligible narrative amplifies this phenomenon. We often fail to take action at inflection points and act aggressively at inopportune moments. This is especially true in a noisy environment when there is constant comparison with short term/incorrect benchmarks or the performance of other’s pursuing similar goals.      Its essential to have a set of guiding principles assisting us navigate this chaos and keep us anchored, especially when we are under pressure. They are the basis for the framework within which we want to operate and processes we want to develop and follow. They could be rudimentary thumb rules or an evolved set of values that we keep coming back to for inspiration and for validation. Sound guiding principles make us more focused and...

     Once upon a time in a land of fabulous riches (and abject poverty) a humble trader came from the west in search of adventure and fortune. He worked hard and made a name for himself, slowly rising through the aristocratic ranks. He had the ear of the kings and gratitude of the nobles while creating one of the largest enterprises in the kingdom. When he passed away he bequeathed his wealth to his two sons - a larger portion to Mr. M and not so large a portion to Mr. A. Mr. M sensed the winds of change and realized that in the new order true power came from the junta. He embarked upon connecting the people in far away and distant lands. For seven years he let gold flow from his coffers for this new venture but it was a mere fraction of his treasure. The other traders tried pulling the strings to block him but the deluge of funds was too much for them. Finally on a September day as the heavens poured forth Mr. M said my work is done and I present to you the fruits of m...