Aaron Brown is highly regarded as an authority on the subject of risk management. Although he originally started out as a poker player and sports bettor (then a trader and portfolio manager), for the past 30-years Aaron’s been a dedicated risk manager. And for the past 10-years, he was the risk manager for quant fund, AQR.
Aaron has also authored several books (ranging in topics from poker to finance and risk), contributes to Bloomberg View and writes a column for Wilmott Magazine.
Topics of discussion:
- Aaron describes how his relationship with risk started at an early age, why he became obsessive about money, and tales from playing poker as a 14yo kid.
- Two sides of risk; the math and the deeper part that your conscious brain cannot understand. And benefits of operating at high intensities while sleep deprived.
- The goals and objectives of a risk manager, thinking about everyday life differently, and how Aaron managed the ‘quant equity crisis’ of August 2007.
- “The point of risk management is to keep yourself in a position where you always have flexibility and it’s always a choice whether you want to cut risk…”
Links and resources mentioned:
- EP 109: Edward Thorp
- Beat the Dealer [Amazon]
- The Quants [Amazon]
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