The 2014 Hedge Fund Rising Stars: Nancy Davis
Davis has a unique, derivativies-based approach to investing that is attracting investor interest in her firm, Quadratic Capital Management.
Nancy Davis would modify the famous dictum always be
closing, from Glengarry Glen Ross, David Mamets
play about capitalism, to always be monetizing.
Davis practices an unusual style of derivatives-based
macro investing that she began developing during her seven
years on the proprietary risk arbitrage desk at Goldman Sachs
Group in New York. This strategy involves keeping the vast
majority of her capital in cash, making investments through
options and swaptions, and constantly harvesting gains.
Its a disciplined, low-risk and highly uncorrelated
approach. But low-risk doesnt equal low-return, and
shes attracting investor interest in her new firm,
Greenwich, Connecticutbased Quadratic Capital Management.
Davis, 37, grew up in Tampa, Florida, and earned a BA in
economics from George Washington University. She joined Goldman
straight out of college and worked there for a decade before
moving to New Yorkbased hedge fund firm Highbridge
Capital Management in 2008. At Goldman, Davis ran one of the
worlds largest buy-side volatility portfolios.