Welcome to episode 9 of Behind the Ticker. In this episode, our special guest is Michael Gayed, the portfolio manager of $RORO and $JOJO and Founder of ATAC Funds. We have an in depth conversation about what led him to investing, his career path, and starting his first funds. We also talk about the unique investment thesis behind his ETFs and how he envisions them being utilized in model portfolios. As an industry veteran, we dive into what it's like to manage money through different cycles and how patience and conviction will ultimately lead to success. Michael has a unique perspective on markets and is one the most consistent providers of market commentary for investors and investment advisors online. To find out more about Michael and his funds, please visit: https://www.atacfunds.com/
Deeper Dive: Insights from the Full Conversation
Beyond the headline strategy, the full conversation between Brad and Michael Gayed covered several additional themes worth highlighting for advisors and investors.
On Process and Philosophy
But because it's so active and because the true this, most of the time, the SMP is the winner, although by magnitude, I can really catch up like I did in 8x and 20 funny with the right setup. You better to blend the two, right? But do it waiting wise properly. So much more than five, 10% range got satellite of the core satellite approach. JoJo, I actually think of the three funds becomes the most interesting because at least it's got yield and income because it's a bond strategy.
Today we have Michael Geid, he is a CEO and founder of ATAC Funds. He's a portfolio manager of two ETFs, Roro and Jojo, which is risk on risk off and junk on junk off. He also has a mutual fund, but a lot of you might have some familiarity with Michael from all of his work that he does on social media, whether it be podcasts, videos, articles, does a lot of market commentary, and he's really out there active in the community providing information.
Market Context and Positioning
So, the new fund was up 27% in 2017. And then 2020, yet the COVID crash, it's in treasuries, it ends 2020, up 72%. Aside from that, it's just an English, right? And it does go back to this point that every strategy is a function of the cycle that you operate in. I need a very particular environment for really old my funds. I need an environment where there's some left tail risk to have a chance of getting risk off right.
Like, I believe in my approach, I know the research, I know the cycle dynamics. I know that I happen to launch. It's not introduced in a show all the data of how unusual the last decade has been because of really QE3 breaking a lot of intermarker ratios. Does that mean that I should give up after 10 years on Mutualner? Does that mean I should give up on Roro after just went through a historic collapse in the risk off life safety trade or if I could do it all over again, what I would I today launch the funds now.
Now if I'm right, they have a credit event. Flight-to-safety research recession happens and suddenly there's convexity in the performance hopefully of all of my funds. And this becomes then the real big challenge, which is that suddenly people start chasing the performance of the funds, what they should be buying it now in advance of that.
Notable Insights
"They might like you and believe in you, but you're approaching me and I'll be working, because you have to be in a cycle that doesn't favor your approach, right, and this is where I think a lot of people get tripped up."
"But let's pivot, because I want to get into your funds, that's why you're here."
Key Takeaways
- We also talk about the unique investment thesis behind his ETFs and how he envisions them being utilized in model portfolios.
- Michael has a unique perspective on markets and is one the most consistent providers of market commentary for investors and investment advisors online.
- The conversation explores important themes in international markets relevant to today's advisor landscape.
What This Means for Advisors
For financial advisors evaluating options for client portfolios, this conversation with Michael Gayed highlights important considerations around fixed income. Understanding the strategy behind each fund—not just the ticker—helps advisors make more informed allocation decisions and better communicate the rationale to clients.
The themes of fixed income and quantitative investing discussed in this episode are particularly relevant in the current market environment, where advisors are increasingly looking for differentiated solutions that go beyond traditional benchmarks.
Listen to the Full Episode
This article is based on an episode of Behind the Ticker, hosted by Brad Roth, Founder and CIO of THOR Financial Technologies. For the full conversation with Michael Gayed, including additional nuances and details, listen on Spotify, Apple Podcasts, or watch on YouTube.