YouSaid · the spoken record

Sander Gerber

lines on the record: 66
first: 2025-05-02
most recent: 2025-05-02
sittings or episodes: 1
sources: podcast

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“That's right, Wall Street tries to make things more complicated because it has to justify the sales commission, but things really are not so complicated.”
2025-05-02 · Masters in Business · Inside the Gerber Statistic with Sander Gerber of Hudson Bay Capital · IDENTIFIED FROM THE TRANSCRIPT · source
“Yes, and it's really not complicated. I mean, Wall Street tries to make things much more complicated than they are, but the simple elegant solution is always better. So it might sound complicated, but it's really not.”
2025-05-02 · Masters in Business · Inside the Gerber Statistic with Sander Gerber of Hudson Bay Capital · IDENTIFIED FROM THE TRANSCRIPT · source
“Vega's the volatility of the An option has premium, and that premium is the extra amount you pay for the right to have limited loss and unlimited gain. And so that premium, that value of that option to exercise or not exercise with limited loss goes up and down in value based upon the degree of movement. So when something's moving around a lot, that has a lot more value. So premium value goes up. When things are not moving a lot, premium value goes down. And so by trading this range of volatility up and down, which is in part dependent on what's happening with the fundamentals of the stock, you were able to grab edge.”
2025-05-02 · Masters in Business · Inside the Gerber Statistic with Sander Gerber of Hudson Bay Capital · IDENTIFIED FROM THE TRANSCRIPT · source
“As opposed to normal distribution. And so by looking at events and when they're going to happen and breaking down the Vega exposure month by month, that gave me an edge that I was able to explore.”
2025-05-02 · Masters in Business · Inside the Gerber Statistic with Sander Gerber of Hudson Bay Capital · IDENTIFIED FROM THE TRANSCRIPT · source
“That's right. That's right. And it was a great edge for me to come to that realization. And maybe it was because I had studied the models at the Wharton School. We had broken them down. And I understood that the models are only as good as the inputs. And a lot of people back then were doing spreads in their head. And the other group were using these CAN models that would give you one volatility exposure across the entire model. And the second thing that I realized was that you need to combine fundamentals with the technicals of the models. In other words, the models assume a normal distribution of returns. But when you get into some kind of event, it's no longer a normal distribution returns. The stock's either going to go up a lot or down a lot. That's a barbell distribution.”
2025-05-02 · Masters in Business · Inside the Gerber Statistic with Sander Gerber of Hudson Bay Capital · IDENTIFIED FROM THE TRANSCRIPT · source
“Which I had to split. Yes. Well, actually, because I had a draw, I didn't get anything. But then the next year I took off. And it turned out that I did have a knack for it. I was able to understand the volatility of the markets. Usually we're vault traders. I did something that was two things that were novel on the floor. The first is I understood that you have to break down your volatility exposure month by month, which back then was unusual. In other words, people had these models that would give you one volatility exposure across the entire portfolio. And I realized that July's an earnings month and August is a beach month. So you can't use those two months to offset each other. And so I was able jerry-rigged the models that were early then to be able to look at my Vega exposure month by month.”
2025-05-02 · Masters in Business · Inside the Gerber Statistic with Sander Gerber of Hudson Bay Capital · IDENTIFIED FROM THE TRANSCRIPT · source
“Congrats. And it took me from July of 91 till December of 1991. I made $500. Profit, not for me, $500 trading profit. But you then split.”
2025-05-02 · Masters in Business · Inside the Gerber Statistic with Sander Gerber of Hudson Bay Capital · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I enjoyed the Philadelphia floor. And also I always liked games. And so I had a talent, I thought for trading, and so I went to the Amex. Someone gave me, it was like $1,100 a month as a stipend, and I kept roughly half the profits. And there was no training. They just threw me there.”
2025-05-02 · Masters in Business · Inside the Gerber Statistic with Sander Gerber of Hudson Bay Capital · IDENTIFIED FROM THE TRANSCRIPT · source
“I learned how people can work together in good conscious with dedication and still muck things up. What we would do is we would parachute into places like British Airways, Montreal Truss, CA industries. And we were like the external strategic planning. Sit next to people and interview them and figure out why projects went amuck, and I understood from that that well meaning people can still muck things up because they don't have an appropriate guide frame or appropriate leadership or they're not. So like little things can take projects astray.”
2025-05-02 · Masters in Business · Inside the Gerber Statistic with Sander Gerber of Hudson Bay Capital · IDENTIFIED FROM THE TRANSCRIPT · source
“Actually, when I graduated Penn, I had been, I'd clerked on the floor of the Philadelphia options exchange in nineteen eighty seven, and I liked it, but my parents had spent all this money to send me to a fancy school. They had taken out a home equity loan to pay for my college tuition. So I thought to be a Muesley floor trader would be disrespectful. So I went to Ban& Company for two years. And I was in management consulting for two years. It was boring. But I did learn something from it. And then I came to The floor of the amex. Wait”
2025-05-02 · Masters in Business · Inside the Gerber Statistic with Sander Gerber of Hudson Bay Capital · IDENTIFIED FROM THE TRANSCRIPT · source
“Upgrade yourself, you've got to be able to develop the capacity to self-learn, to take in from the environment around you to enable yourself to grow your skill set, through your experiences through working with others. And that's something we try to incorporate within Hudson Bay, is the ability for people's careers to develop. And it is something that you have to rely on self-learning. And within college, in certain disciplines in college, like in philosophy, a lot of it is, you know, discovery, self-discovery. In other disciplines, there is no self-discovery. And so I think it is important the humanistic background.”
2025-05-02 · Masters in Business · Inside the Gerber Statistic with Sander Gerber of Hudson Bay Capital · IDENTIFIED FROM THE TRANSCRIPT · source
“It's a good point. You know, the Wharton School is arguably the finest finance school, but finance is a technical discipline. And I wanted to understand the world. And I think that you can only go a certain degree using that background. And it's true that in order to, I think,”
2025-05-02 · Masters in Business · Inside the Gerber Statistic with Sander Gerber of Hudson Bay Capital · IDENTIFIED FROM THE TRANSCRIPT · source
“Exactly. And so, you know, when I was in college, I really didn't know much about the markets. And as I told you, I still, I had entered first the Wharton School, so I was still getting my degree there, but I was really focused on the philosophy. And, you know, people think the philosophy is not so practical. What are you going to do with it? And here are the top FX trader in the world came and said, this is what you should be doing. So it was sort of ratification of what I was studying.”
2025-05-02 · Masters in Business · Inside the Gerber Statistic with Sander Gerber of Hudson Bay Capital · IDENTIFIED FROM THE TRANSCRIPT · source
“To speak he had majored in Sanskrit Eastern philosophy, and then he got his MBA at Wharton, and he was the leading FX trader at Bankers Trust. And he spoke about how his philosophy, Eastern philosophy, helped him understand the markets that you might feel very convicted the markets should go a certain way, but the markets have their own mindset, and you have to accept what the markets have. And it helped him emotionally to trade better because he realized that mother market was going to be right. And so it was from his philosophy background that he was able to Reconcile that with him, with his beliefs in terms of where markets should go, and it helped him to be a better trader.”
2025-05-02 · Masters in Business · Inside the Gerber Statistic with Sander Gerber of Hudson Bay Capital · IDENTIFIED FROM THE TRANSCRIPT · source
“It was moral philosophy generally, starting with the ancient Greeks through the existentialists. I think that I use my philosophy background much more than my finance background because it really gives you a different view on the world. When I was at Wharton college, Andrew Krieger came in 1987.”
2025-05-02 · Masters in Business · Inside the Gerber Statistic with Sander Gerber of Hudson Bay Capital · IDENTIFIED FROM THE TRANSCRIPT · source
“Actually, I was good at math, so I first entered the Wharton School undergrad. I don't have an MBA from Wharton. And then when I was at Wharton, Didn't think I was getting an education. So I Decided to transfer into the College of Arts and Sciences. So I got two degrees concurrently. I picked up a degree in philosophy, humanistic philosophy. I wanted to understand the development of thought, how we got to where we are in society.”
2025-05-02 · Masters in Business · Inside the Gerber Statistic with Sander Gerber of Hudson Bay Capital · IDENTIFIED FROM THE TRANSCRIPT · source