The Conscientious Culture behind Risk Control with Kapil Rastogi of PlusPlus

The Derivative

As investors and traders, we all strive for success in the markets. But what sets the best apart from the rest? According to Kapil Rastogi, the President and co-founder of PlusPlus Capital Management, it's all about having the right culture. Ranking among the best in the industry in RCM’s semi-annual rankings report for best risk control certainly doesn’t hurt either.

In this episode of The Derivative, Kapil shares his insights on a range of topics, including his personal journey to becoming an investor and trader, how compensation structure and successful backtesting can be at odds, and his unique approach to a behavioral approach to trading. He also delves into the importance of culture versus strategy, why most investors are asking the wrong questions, and how to identify a firm with the right culture. With a focus on the two components of success, strategy, and culture, Kapil highlights the significance of hiring the right people and fostering a positive culture.

Kapil and Jeff also discuss the concept of skew and how it affects risk, the importance of minimizing drawdown, and how the recent bond volatility has played out in the markets. Through his experience and expertise, Kapil offers valuable insights into what it takes to succeed in the world of risk control. Tune in to learn more about the conscientious culture behind risk control — SEND IT!

Chapters:

00:00-02:14 = Intro

02:15-11:47 = Getting started with Neiderhoffer & backtesting blunders

11:48-30:49 = Meticulous Backtesting, complex behavior models & why A.I. can’t replace intuition

30:50-47:40 = Culture vs Strategy: The five types of Culture

47:41-01:04:21 = Risk control, minimizing drawdown & a simple definition of skew

01:04:22-01:19:58 = A calculated response to the SVB events

01:19:59-01:18:41 = Sports vs Hedge funds: staying above your high water mark

Check out Kapil on LinkedIn and visit pluspluscapital.com for more information on PlusPlus Capital Management

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