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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

Nancy Davis would modify the famous dictum “always be closing,” from Glengarry Glen Ross, David Mamet’s 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. It’s a disciplined, low-risk and highly uncorrelated approach. But low-risk doesn’t equal low-return, and she’s attracting investor interest in her new firm, Greenwich, Connecticut–based 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 York–based hedge fund firm Highbridge Capital Management in 2008. At Goldman, Davis ran one of the world’s largest buy-side volatility portfolios.

 

Daniel
Ben-David

Charles (Chuck)
Caffray

Eli
Combs

Nancy
Davis

Scott
Ferguson

Maya
Fishman

Matthew
Fitzmaurice

Brad
Gilbert

Deepak
Gulati

Andrew
Immerman

Barry
Kaplan

Danny
Kayne

Anthony
Lawler

James (Jimmy)
Levin

Jonathan
Loflin

Brendan
MacMillan

Ryan
McNally

Jessica
Taylor
O’Mary

Jamie
Parrot

Sanjay
Patel

Jessica
Reed
Saouaf

Nitin
Saigal

Christopher
Schelling

Jeremy
Schiffman

Amy
Schneidkraut

Gray
Smith

Sam
Smith

Ezra
Solomon

Maria
Vassalou

Jack
Yuen