The Derivative · Oct 8, 2026 · 26m · 14m saved
With Jeff Malec, Managing Director and Partner at RCM Alternatives
Discretionary macro managers, who trade on their own judgment rather than a computer model, were the new strategy of the moment at this year's CTA Expo, Jeff Malec said, at a conference that used to be full of quants.
Ten years ago it looked as though systematic trading would leave no room for discretionary traders. Malec said every manager now has the same programming, testing and risk tools, so the human brain is one of the few original sources of trades left.
"Like nobody's impressing you with how they use the computer, how they use data, how they use this even with AI." — Jeff Malec
Jeff Malec, Managing Director and Partner at RCM Alternatives, on The Derivative, has spent more than 25 years in the futures industry, from clerking in the bond futures pits to managing commodity-based hedge fund products, and founded Attain Capital Management before joining RCM. In this solo episode he also checks the first evidence on AI and jobs against a dashboard he built himself.
The full episode is covered here so you can skip it. 26 minutes of audio, 12 minutes of reading.
Here are the 9 insights that matter.
Key Takeaways
Discretionary macro is the new strategy of the moment because systematic tools no longer set a manager apart
The Lakers buyers bought a tax deduction as well as a team
Player contracts can be amortized over 15 years, worth about $800M a year in deductions by his estimate
A Utah golf resort went back to its developer for $30M after a default of about $300M in 2009
Entry-level knowledge workers are the first AI casualties in the data, while young workers in physical jobs are flat to up
AI job losses have not spread up the age curve, which Malec called good for the economy and bad for his thesis
Even The Derivative has gone quiet on tail hedging, which he read as a sign of a complacent market
1. Kids' Games Are Finite
Malec opened with youth sports. A friend without children told him his kids would not go pro and that he did not need to attend every game.
Travel teams have gotten out of hand, he said, and families still sign up
Teams with names like Going Pro, Prospect and Future Stars market themselves the way companies sell berry-flavored vapes to preteens, he said. Some parents told him travel sports were their college savings plan. His family still does it, because high school teams in his area pick their players from the travel teams.
The games are a supply that runs out
"It's Econ 101. There's only so much supply of your kids games and then it's done." — Jeff Malec
If the Chicago Bears were going to stop existing in two years, he said, tickets would be astronomical and fans would drop everything to go. His son, a senior, was one under par through nine holes at the sectional golf tournament and in second place, then missed qualifying for state by a stroke.
